Pound (GBP) unclear in absence of data
The pound (GBP) was mixed yesterday as a lack of UK economic data left the currency without a clear direction.
This saw Sterling rise against its weaker peers but cede ground elsewhere.
This morning, the UK’s final services PMI for May could impact the pound. Confirmation of a sharp slowdown in activity could dampen GBP’s appeal.
Euro (EUR) subdued by German unemployment data
The euro (EUR) also faced uncertainty on Tuesday, with the single currency undermined by a larger-than-forecast rise in the number of unemployed people in Germany.
However, the euro was spared losses against its weaker rivals as a risk-off market mood lent the safer currency some support.
The only Eurozone data out today is the bloc’s finalised services PMI results. Barring a deviation from the preliminary results, the survey may not have much impact on EUR as investors look ahead to tomorrow’s European Central Bank (ECB) interest rate decision.
US dollar (USD) rebounds as market mood sours
The safe-haven US dollar (USD) recovered yesterday, after striking a near two-month low in overnight trade, thanks to a downbeat market mood.
In the afternoon, the ‘greenback’ found its upside capped by a larger-than-forecast drop in US job openings in April.
The focus for USD investors today is on May’s ISM services PMI. An expected improvement in activity could lift the ‘greenback’, but if the survey prints below forecasts – as the manufacturing PMI did earlier in the week – the US dollar could slide.
Canadian dollar (CAD) struggles as oil prices fall
The crude-linked Canadian dollar (CAD) trended lower on Tuesday as weaker oil prices dragged on the ‘loonie’.
Today, CAD investors are focused on the Bank of Canada’s (BoC) interest rate decision, where an expected rate cut could pile pressure on the Canadian dollar.
Australian dollar (AUD) climbs despite disappointing GDP
The Australian dollar (AUD) rose last night, despite lacklustre Australian GDP data, thanks to hawkish comments from Reserve Bank of Australia (RBA) Governor Michele Bullock and a stronger Chinese services PMI.
New Zealand dollar (NZD) rises as market mood improves
The New Zealand dollar (NZD) also rose last night as the ‘kiwi’ enjoyed its positive correlation with the ‘Aussie’ and an improvement in market risk appetite.