Pound (GBP) muted following manufacturing PMI
The pound (GBP) was subdued yesterday after the final UK manufacturing PMI for April confirmed a contraction in factory activity.
However, the survey results were revised slightly higher than preliminary estimates, which seemed to limit GBP’s losses.
Turning to today, Sterling could face resistance after the OECD cut growth forecasts for the UK.
Euro (EUR) buoyed by risk-off mood
The euro (EUR) enjoyed some support yesterday, despite Eurozone markets being closed for the May Day holiday.
A souring market mood aided the safer single currency, while EUR’s negative correlation with a weaker US dollar (USD) also lent the euro support.
This morning, the Eurozone’s final manufacturing PMI results are out. Could a deepening contraction in factory activity see the euro soften?
US dollar (USD) tumbles following dovish Fed comments
The US dollar faced headwinds yesterday amid a surprise contraction in the American manufacturing sector and a sharper slowdown in job openings.
USD exchange rates then slumped in the wake of the Federal Reserve decision in the evening. Fed Chair Jerome Powell struck a surprisingly dovish tone, which dragged the ‘greenback’ down.
Looking forward, the latest American factory orders data could impact USD. Will an acceleration in growth lend USD support?
Canadian dollar (CAD) wavers as oil prices decline
The crude-linked Canadian dollar (CAD) was mixed yesterday, despite a drop in oil prices putting some pressure on the currency.
Today, an expected expansion in Canada’s trade surplus in March could support the ‘loonie’.
Australian dollar (AUD) climbs amid risk-on mood
The Australian dollar (AUD) rallied last night, despite a narrowing of Australia’s trade surplus, as an upbeat mood following the Fed decision lifted the risk-sensitive ‘Aussie’.
New Zealand dollar (NZD) rises as risk appetite returns
The New Zealand dollar (NZD) also ticked higher last night as the bullish market impulse boosted demand for the ‘kiwi’.