Pound (GBP) slips as UK service sector growth slows
The pound (GBP) stumbled yesterday after the UK’s latest services PMI pointed to a much sharper-than-forecast slowdown in business activity this month.
However, the British manufacturing index unexpectedly returned to growth, helping to cushion Sterling’s downside.
This morning, new data showed a huge contraction in UK retail sales last month. Domestic sales growth shrank by 2.3% in April, rather than the expected 0.4%, which could see the pound slide today.
Euro (EUR) uncertain amid mixed PMIs
The euro (EUR) was unclear yesterday, rising against its weaker rivals but struggling elsewhere, due to mixed PMI data.
The Eurozone’s services index came in slightly below expectations, but still showed strong activity in the sector. Meanwhile, despite beating forecasts, the manufacturing PMI revealed an ongoing contraction in factory activity.
Turning to today, a speech from European Central Bank (ECB) policymaker Isabel Schnabel could influence EUR this morning. The euro could then trade without a clear direction for the remainder of the session.
US dollar (USD) recovers amid upbeat data
The US dollar (USD) initially weakened yesterday morning, with the ‘greenback’ suffering a correction following Wednesday evening’s rally.
However, USD regained ground in the afternoon thanks to a fall in initial jobless claims and a much stronger-than-expected US services PMI.
Looking ahead, an expected 0.8% decline in US durable goods orders in April – due out this afternoon – could dent USD.
Canadian dollar (CAD) pressured by weaker oil prices
The Canadian dollar (CAD) was subdued yesterday as the recent depreciation in oil prices weighed on the crude-linked ‘loonie’.
This afternoon, Canada’s latest retail sales data could impact CAD. If domestic sales growth stalled as expected last month, the ‘loonie’ could struggle to attract support.
Australian dollar (AUD) struggles amid risk-negative trade
The Australian dollar (AUD) touched multi-week lows against some of its peers last night as a risk-off mood undermined the currency.
New Zealand dollar (NZD) slips despite rising consumer morale
The New Zealand dollar (NZD) softened overnight, despite an upbeat domestic consumer confidence report, as a souring market mood weighed on the ‘kiwi’.