Pound (GBP) subdued despite positive manufacturing PMI
The pound (GBP) initially stumbled yesterday, with confirmation of an expansion in UK manufacturing activity failing to lift Sterling.
However, an improving market mood saw the increasingly risk-sensitive currency rebound against its safer rivals as the session progressed.
Today, UK economic data is in short supply, which means we could see GBP exchange rates trading in a wide range.
Euro (EUR) struggles as factory activity contracts
Confirmation of a contraction in the Eurozone manufacturing PMI put some pressure on the euro (EUR) yesterday, as did an improving market mood.
Nevertheless, the single currency was spared steeper losses thanks to its strong negative correlation with a falling US dollar (USD).
Germany’s latest jobs data could dent the euro today, after the number of unemployed persons in the Eurozone’s largest economy crept higher in May. However, the European Central Bank’s (ECB) looming interest rate decision could limit EUR movement.
US dollar (USD) slides as ISM PMI misses forecasts
The US dollar slumped yesterday after the ISM manufacturing PMI for May printed below expectations.
Rather than rising from 49.1 to 49.6, the score slipped to 48.7, pointing to a faster pace of contraction in US factory activity last month.
Turning to today, the latest Job Openings and Labor Turnover survey (JOLTs) is forecast to show a fall in job vacancies in April. This could weigh on the US dollar.
Canadian dollar (CAD) declines amid falling oil prices
The crude-linked Canadian dollar (CAD) fell sharply yesterday as a drop in oil prices and a weaker Canadian manufacturing PMI both pulled the ‘loonie’ lower.
Looking ahead, Canadian data is absent from the calendar during today’s session. Therefore, crude price dynamics could drive CAD exchange rates.
Australian dollar (AUD) falls as company profits decline
The Australian dollar (AUD) fell last night after new data showed a larger-than-expected decline in Australian corporate profits during the first quarter of 2024, raising concerns about the country’s economy.
New Zealand dollar (NZD) wobbles amid cautious mood
The New Zealand dollar (NZD) wavered overnight, softening slightly as market sentiment remained modestly cautious.