Pound (GBP) fluctuates despite strong PMI results
The Pound (GBP) was volatile yesterday, despite the UK’s services PMI beating forecasts.
Although the PMI surveys showed an uptick in business activity and stubborn inflationary pressures, Sterling was unable to strengthen.
Today, market-moving UK data is absent from the calendar. As a result, GBP could trade in a wide range against its peers.
Euro (EUR) wavers following mixed PMIs
The Euro (EUR) was also choppy during yesterday’s session following mixed PMI data and unclear messaging from the European Central Bank (ECB).
The Eurozone services PMI beat forecasts, while the manufacturing survey surprised to the downside. Meanwhile, the ECB said it was optimistic about the inflation outlook but would remain patient with regards to interest rate cuts.
Turning to today, Germany’s latest business climate index showed an improvement in morale this month. This could lend EUR support as the morning progresses.
US Dollar (USD) rebounds from Fed-induced decline
The US Dollar (USD) initially came under pressure on Thursday, touching multi-week lows, in the wake of the Federal Reserve’s cautious meeting minutes published on Wednesday evening.
However, USD managed to bounce back after attracting some dip-buying. A fall in US jobless claims also supported the ‘Greenback’.
Looking forward, market risk appetite could drive the safe-haven US Dollar today amid a lack of American data. Could a positive market mood dent USD?
Canadian Dollar (CAD) wobbles alongside oil prices
The Canadian Dollar (CAD) wavered yesterday as the crude-linked currency traded in tandem with wavering oil prices.
Crude price dynamics could continue to drive the Canadian Dollar today in the absence of any Canadian data releases. Will softening oil prices drag CAD lower?
Australian Dollar (AUD) rises amid risk-positive trade
The risk-sensitive Australian Dollar (AUD) strengthened last night as an upbeat market mood boosted the currency’s appeal.
New Zealand Dollar (NZD) recovers post-retail sales losses
The New Zealand Dollar (NZD) initially stumbled overnight following a larger-than-forecast contraction in New Zealand retail sales in the fourth quarter of 2023. However, a bullish market impulse helped the riskier currency recover.