Pound (GBP) weakens as services PMI misses forecasts
The pound (GBP) stumbled during yesterday’s session after the UK’s final services PMI was revised lower.
March’s reading came in at 53.1, marking a faster-than-forecast slowdown in service sector activity.
Sterling could struggle to find a clear direction during today’s trade amid a lack of UK economic data.
Euro (EUR) capped by ECB minutes
The euro (EUR) rose against its weaker peers on Thursday after the Eurozone’s final services PMI for March was revised higher, showing a faster-than-expected acceleration in growth.
However, the European Central Bank’s (ECB) latest meeting minutes strengthened the case for a June rate cut, which stifled EUR’s potential.
Later this morning, an expected decline in Eurozone retail sales could dent EUR.
US dollar (USD) continues to fall as jobless claims rise
The US dollar (USD) extended its downside yesterday in the wake of Wednesday’s weaker services PMI and dovish comments from Federal Reserve Chair Jerome Powell.
USD faced further losses in the afternoon as the latest initial jobless claims figure rose more than expected.
Looking ahead, this afternoon brings the latest US non-farm payrolls report. Economists expect US job creation to have slowed last month, which could weigh heavily on the US dollar.
Canadian dollar (CAD) unclear amid lack of data
The Canadian dollar (CAD) was mixed yesterday amid a lack of fresh data. CAD slipped against its stronger rivals but a steady rise in oil prices over the week cushioned the crude-linked currency.
Canada’s latest jobless rate is due out tonight. Could an uptick in unemployment put pressure on the ‘loonie’?
Australian dollar (AUD) falls as export growth shrinks
The Australian dollar (AUD) slipped during the overnight session after Australia’s latest trade report showed a contraction in exports in February.
New Zealand dollar (NZD) struggles amid risk-off trade
The New Zealand dollar (NZD) also weakened last night as a souring market mood pressured the risk-sensitive ‘Kiwi’.