US Dollar (USD) rises as Treasury bond yields climb
The US Dollar (USD) enjoyed support yesterday as the ‘Greenback’ was buoyed by rising US Treasury bond yields.
However, a shifting market mood seemed to cap the safe-haven currency’s upside.
This afternoon’s PMI results could impact USD later today. Although not as impactful as the ISM releases, a softer reading today could dent the US Dollar.
Pound (GBP) stumbles despite tax cut hopes
The Pound (GBP) slipped against many of its rivals yesterday, despite UK government borrowing coming far below forecasts and stoking talk of spring tax cuts from Chancellor Jeremy Hunt.
However, this was not enough to lift Sterling against its stronger rivals.
Today, the Pound could find support following the latest PMI data. Economists expect to see another expansion in the UK’s vital services sector this month.
Euro (EUR) falls as consumer morale declines
The Euro (EUR) faced selling pressure on Wednesday as investors continued to shun the currency ahead of the European Central Bank (ECB) interest rate decision tomorrow.
In the afternoon, and unexpected deterioration in Eurozone consumer confidence added to the currency’s woes.
The Eurozone PMIs are in the spotlight for EUR investors today. An ongoing contraction in business activity this month could see the Euro lose ground again.
Canadian Dollar (CAD) buoyed by USD correlation
The Canadian Dollar (CAD) rose against its weaker rivals during Wednesday’s European session, as CAD enjoyed its positive trading relationship with USD.
Looking forward, the Bank of Canada (BoC) will announce its first interest rate decision of 2024 this afternoon. Any hints that the bank may be considering rate cuts could weigh on the ‘Loonie’.
Australian Dollar (AUD) volatile following PMI surveys
The Australian Dollar (AUD) fluctuated last night amid a shifting market mood and mixed PMI data.
New Zealand Dollar (NZD) recovers following post-inflation fall
The New Zealand Dollar (NZD) stumbled last night after New Zealand’s latest inflation data showed that prices cooled in the fourth quarter of 2023. However, a risk-on mood has seen the ‘Kiwi’ rally this morning.