US Dollar (USD) Climbs as PMI Beats Forecasts
The safe-haven US Dollar (USD) strengthened yesterday, with a risk-off market mood and a stronger-than-forecast services PMI both lending the currency support.
An unexpectedly large drop in job openings may have capped USD’s gains, although the ‘Greenback’ was still able to march higher.
Turning to today, the ADP employment change figure is in focus. Could an uptick in private sector payrolls see the US Dollar rise even higher?
Pound (GBP) Subdued despite Stronger PMI
The Pound (GBP) was muted yesterday, despite the UK’s final PMI data reporting a larger-than-expected recovery in service sector activity.
While the results kept Sterling supported against its weaker rivals, it was not enough to prevent the Pound from falling against stronger peers.
Looking at today’s session, a speech from Bank of England (BoE) Governor Andrew Bailey may be the primary catalyst for movement. Could hawkish comments help GBP gain ground?
Euro (EUR) Slips amid Dovish ECB Comments
The Euro (EUR) weakened against many of its peers yesterday, following dovish comments from European Central Bank (ECB) rate-setter Isabel Schnabel.
Schnabel – one of the most hawkish and influential policymakers at the ECB – said that another rate hike was ‘unlikely’. This dovish shift fuelled interest rate cut expectations.
A shock contraction in German factory orders this morning may weigh on EUR through the start of the session. Later on, could a modest recovery in Eurozone retail sales lift the common currency?
Canadian Dollar (CAD) Buoyed by Rising Oil
Rising oil prices underpinned the crude-linked Canadian Dollar (CAD) yesterday. However, a weaker final reading of Canada’s PMI capped CAD’s upside.
Today, the spotlight is on the Bank of Canada’s (BoC) interest rate decision. Could dovish forward guidance dent the ‘Loonie’?
Australian Dollar (AUD) Rallies despite Weaker GDP
The Australian Dollar (AUD) recovered from multi-week lows last night, despite Australia’s third-quarter GDP data missing forecasts, as an upbeat mood boosted the risk-sensitive ‘Aussie’.
New Zealand Dollar (NZD) Firms amid Risk-On Mood
The risky New Zealand Dollar (NZD) also rose overnight, as the bullish market impulse saw investors flock to the ‘Kiwi’.