Pound (GBP) softens in absence of data
The pound (GBP) struggled yesterday, slipping against its stronger rivals, as a lack of UK economic data left the currency exposed to losses.
Meanwhile, speculation that the Bank of England (BoE) could start cutting interest rates in June put some pressure on Sterling.
Turning to today, the UK’s final services PMI results for March are due this morning. Could an upward revision help the pound recoup losses?
Euro (EUR) firms despite cooler Eurozone CPI
The euro (EUR) managed to rise yesterday, despite the Eurozone’s consumer price index showing an unexpected cooldown in inflation last month.
The common currency managed to shrug off the cooler CPI figures, benefitting from its strong negative correlation with a tumbling US dollar (USD).
Looking forward, the European Central Bank’s (ECB) March meeting minutes are due later today. Any dovish signals from policymakers could pull the euro lower.
US dollar (USD) slides as service sector activity slows
The US dollar tumbled yesterday after the latest ISM services PMI printed below expectations.
Rather than showing a slight expansion in service sector activity, as forecast, March’s data revealed a slowdown in growth. This saw the US dollar suffer notable losses.
This afternoon, the latest US initial jobless claims figure could prompt further losses for USD. Economists expect to see an uptick in unemployment claims.
Canadian dollar (CAD) rangebound amid mixed factors
The crude-linked Canadian dollar (CAD) was underpinned by rising oil prices yesterday. However, a weaker services PMI and CAD’s positive correlation with USD put some pressure on the currency.
Today, oil price dynamics could continue to influence the ‘loonie’. Will a fall in oil pull the Canadian dollar lower?
Australian dollar (AUD) rallies on strong services PMI
The Australian dollar (AUD) rose to multi-week highs last night, building on yesterday’s gains, after Australia’s services PMI was revised higher to show the fastest pace of growth in the sector since April 2022.
New Zealand dollar (NZD) enjoys AUD correlation
The New Zealand dollar (NZD) also climbed overnight, with the ‘Kiwi’ enjoying its positive correlation to the ‘Aussie’ as well as weakness in the US dollar.