Pound (GBP) Strengthens on Upbeat PMIs
The Pound (GBP) rallied yesterday after the UK’s PMI surveys printed higher than expected.
The preliminary readings for November showed that activity in the British service sector returned to growth this month, raising hopes that the UK economic outlook isn’t as bleak as feared.
Looking ahead, GBP data is thin on the ground today. As a result, Sterling may trade without a clear direction.
Euro (EUR) Slips as Business Activity Contracts
The Euro (EUR) was subdued yesterday, slipping against its stronger peers following lacklustre PMI data.
Although both the manufacturing and services scores printed marginally higher than expected, they still showed an ongoing contraction in business activity.
An expected improvement in German business morale could lift EUR this morning. However, any dovish comments from European Central Bank (ECB) President Christine Lagarde later on could undermine the common currency.
US Dollar (USD) Falls as Market Mood Improves
The US Dollar (USD) weakened yesterday as a risk-on market mood sapped demand for the safe-haven ‘Greenback’.
In addition, American markets were closed for Thanksgiving, which denied the US Dollar an opportunity to recover.
Turning to today, the latest US PMI results are due out in the afternoon. Could deteriorating private sector activity weigh on USD exchange rates?
Canadian Dollar (CAD) Dragged Lower by Falling Oil Prices
The oil-sensitive Canadian Dollar (CAD) faced headwinds yesterday as crude prices fell by more than 1% over the course of the session.
This afternoon, Canadian retail sales data is due out. With sales growth expected to have stalled in September, CAD could face further pressure.
Australian Dollar (AUD) Rangebound amid Mixed Trade
The Australian Dollar (AUD) wavered overnight. While a downbeat market mood pressured AUD, rising commodities prices kept the currency afloat.
New Zealand Dollar (NZD) Underpinned by Commodities Prices
Likewise, the risk-sensitive New Zealand Dollar (NZD) was rangebound amid a cautious tone and stronger commodities prices.