Pound (GBP) choppy amid mixed UK economic data
The pound (GBP) fluctuated last Friday as new data painted a mixed picture of the UK economy.
While British retail sales surged in May, growing 2.9% following April’s 1.8% decline, the latest PMI surveys were less positive. In particular, the services index unexpectedly slowed to a seven-month low.
In the absence of more impactful UK data today, the latest Confederation of British Industry (CBI) industrial trends survey could affect GBP. Will another negative reading sap Sterling support?
Euro (EUR) undermined by weaker PMIs
The euro (EUR) stumbled at the start of Friday’s session as the latest PMI surveys showed that activity in both the manufacturing and services sectors was weaker than expected this month.
However, the safer euro was able to recoup some losses against its riskier rivals later on amid a souring market mood.
Turning to today, an expected improvement in Germany’s business climate indicator for June could lend EUR support this morning.
US dollar (USD) rallies on stronger PMIs
After a muted start to the session, the US dollar (USD) then gained ground at the end of last week following the S&P PMIs.
Although not as impactful as the ISM releases, the latest surveys lifted USD. Both scores beat forecasts, with the services index showing the fastest expansion in activity since April 2022.
Looking ahead, risk appetite could drive the safe-haven US dollar today. This evening, a speech from Federal Reserve policymaker Mary Daly could also impact USD. Any hawkish remarks may boost the ‘greenback’.
Canadian dollar (CAD) unclear as oil prices plateau
The crude-linked Canadian dollar (CAD) was mixed on Friday as oil prices plateaued following an impressive week.
Today, oil movements could continue to drive CAD amid a lack of Canadian economic data. Could crude march higher once again this week, thereby lifting the ‘loonie’?
Australian dollar (AUD) flat amid cautious market mood
The Australian dollar (AUD) was muted as this week’s session opened, as a cautious market mood subdued the risk-sensitive currency.
New Zealand dollar (NZD) unmoved by trade data
New Zealand’s latest trade data failed to lift the New Zealand dollar (NZD) last night, despite exceeding forecasts, as a gloomy mood stifled the risk-sensitive ‘kiwi’.