Pound (GBP) uninspired by upbeat GDP
The pound (GBP) struggled to attract support on Friday, despite the UK’s final results for first-quarter GDP being revised higher.
The British economy grew 0.7% at the start of 2024, above the initial estimate of 0.6%. But despite this positive news, Sterling stumbled against its stronger peers.
Today, the UK’s final manufacturing PMI for June could potentially impact the pound, particularly if it differs from the preliminary reading.
Euro (EUR) uncertain as German unemployment rises
The euro (EUR) was mixed at the end of last week, with an unexpected rise in German unemployment putting some pressure on the common currency.
However, EUR’s strong negative correlation with a weaker US dollar (USD) helped to offset the potential downside.
The euro is on the front foot this morning following the first round of the French election over the weekend showed less support for the far-right National Rally than some polls had predicted. Looking ahead, easing German inflation this afternoon could put pressure on EUR.
US dollar (USD) stumbles amid cooling inflation
The US dollar faced some selling pressure on Friday following the publication of the latest US core PCE price index.
The Federal Reserve’s preferred gauge of inflation cooled from 2.8% in April to 2.6% in May, reviving bets that the US central bank may start cutting interest rates in September.
This morning, the US dollar has extended its losses. Could an expected uptick in June’s ISM manufacturing PMI, due out this afternoon, put a floor under USD?
Canadian dollar (CAD) firms as GDP expands
The crude-linked Canadian dollar (CAD) shrugged off a decline in oil prices on Friday and managed to rise against some of its peers amid signs of ongoing economic growth in Canada.
With Canadian economic data thin on the ground today, could climbing oil prices lift the ‘loonie’?
Australian dollar (AUD) wobbles amid mixed PMIs
The Australian dollar (AUD) wavered as this week’s session began. While a weaker-than-forecast Australian manufacturing PMI undermined AUD, a stronger Chinese PMI cushioned the currency.
New Zealand dollar (NZD) firms amid cautious optimism
The New Zealand dollar (NZD) ticked higher at the start of this week’s session as a cautiously upbeat market mood lifted the risk-sensitive ‘kiwi’.