Pound (GBP) buoyed by services PMI
The pound (GBP) found some success yesterday after the UK’s finalised services PMI for June was revised higher.
The score came in at 52.1, above the preliminary reading of 51.2. With the UK services sector performing better than anticipated last month, GBP attracted support.
Today, Sterling may be muted as the UK heads to the ballot box for the country’s general election.
Euro (EUR) wobbles amid mixed data
The euro (EUR) was mixed yesterday as some rather lacklustre data left the single currency to waver.
The Eurozone’s final services PMI was revised marginally higher to show that activity did not slow as much as expected last month. Meanwhile, Eurozone producer price inflation cooled, a factor that could lead to more European Central Bank (ECB) interest rate cuts later in the year.
EUR could start today’s session on the back foot after an unexpected slump in German factory orders in May. Later, the ECB’s meeting minutes are in focus. A dovish consensus at the ECB could see the euro stumble.
US dollar (USD) tumbles as services PMI misses forecasts
The US dollar (USD) slumped on Wednesday as the ISM services PMI showed an unexpected contraction in activity in June.
This was exacerbated by the latest ADP employment report, which showed a slowdown in job creation last month. The Federal Reserve meeting minutes in the evening prompted little movement.
Today, US markets are closed for Independence Day, meaning movement in the ‘greenback’ may be limited.
Canadian dollar (CAD) pressured by USD correlation
A widening Canadian trade deficit in May weighed on the Canadian dollar (CAD) yesterday, as did CAD’s positive correlation with a weakening US dollar.
Looking ahead, Canada’s June services PMI could lend the ‘loonie’ modest support, if it improves as expected.
Australian dollar (AUD) stabilises following yesterday’s rally
The Australian dollar (AUD) held steady overnight, after rallying yesterday afternoon in response to an improving market mood.
New Zealand dollar (NZD) flat amid quiet trading conditions
Likewise, the New Zealand dollar (NZD) traded in a narrow range last night as a lack of NZD data kept the currency muted.