Pound (GBP) Ticks Higher following PMIs
The Pound (GBP) rose at the start of Friday’s session after the UK’s latest service sector PMI beat forecasts.
However, Sterling was unable to hold on to its gains against some of its stronger rivals, as a deeper contraction in UK factory activity stifled the currency’s upside.
UK economic data is in short supply today, which may leave the Pound trading without a clear direction.
Euro (EUR) Slides as PMIs Miss Forecasts
The Euro (EUR) slumped on Friday after the Eurozone’s latest PMI results missed forecasts.
The surveys pointed to a deepening contraction in private sector activity, fuelling fears of a recession in the bloc.
Turning to today, Germany’s latest business climate index is expected to show an improvement in morale. Could this lift the common currency?
US Dollar (USD) Jumps following Fed Remarks
The US Dollar (USD) leapt on Friday following hawkish comments from Federal Reserve policymaker John Williams.
Williams warned that markets were overreacting to the Fed’s recent rate decision, which had a distinctly dovish tilt. He also pushed back on rate cut speculation.
Amid a lack of US economic data today, market risk dynamics may drive most movement in the safe-haven US Dollar. Could the current cautious mood lend USD support?
Canadian Dollar (CAD) Rises alongside USD
The Canadian Dollar (CAD) firmed on Friday, thanks to its positive correlation to USD. Even a sharp drop in oil prices failed to drag the crude-linked ‘Loonie’ lower.
Market-moving Canadian data is absent from the calendar today. As a result, CAD exchange rates could trade on oil price dynamics.
Australian Dollar (AUD) Firms without Clear Catalyst
The risk-sensitive Australian Dollar (AUD) trended higher as this week’s session opened, despite a muted market mood and lack of Australian data.
New Zealand Dollar (NZD) Marches Higher following Strong Data
The New Zealand Dollar (NZD) strengthened last night. Both New Zealand’s November services PMI and fourth-quarter consumer confidence index beat forecasts, raising hopes about the country’s economic outlook.