Pound (GBP) uncertain amid lack of data
The pound (GBP) was mixed on Tuesday as an ongoing lack of British economic data left the currency trading without a clear direction.
However, a slightly more optimistic outlook for the UK amid signs of a recovering economy and renewed political stability helped Sterling remain afloat against its weaker rivals.
This morning, the UK’s latest services PMI is in the spotlight. Could an acceleration in activity this month see Sterling strengthen?
Euro (EUR) weakens on ECB rate cut bets
The euro (EUR) fell yesterday as markets increased their bets that the European Central Bank (ECB) will cut interest rates again in September.
An improvement in Eurozone consumer confidence in the afternoon failed to lift the euro. While morale improved, this was partially due to optimism that the ECB will continue loosening its monetary policy in the second half of the year.
The Eurozone’s latest PMIs are the focus for EUR investors today. An expected improvement in private sector activity could lift the common currency.
US dollar (USD) rises as market mood sours
The US dollar (USD) marched higher against most of its rivals yesterday as a gloomy market mood boosted demand for the safe-haven currency.
The risk aversion came amid concerns over China’s economic outlook and the political uncertainty in the US following Joe Biden’s withdrawal from the 2024 presidential race.
Although less impactful than the ISM releases, the S&P Global PMIs for the US could affect the ‘greenback’ this afternoon. Will signs of slowing business activity weigh on USD?
Canadian dollar (CAD) shrugs off weaker oil prices
The crude-linked Canadian dollar (CAD) was unfazed by falling oil prices yesterday, with the currency managing to capitalise on its positive correlation with a rising US dollar.
Today, the Bank of Canada (BoC) will announce its latest monetary policy decision. Could another interest rate cut see the Canadian dollar slump?
Australian dollar (AUD) stumbles on weaker-than-expected PMIs
The Australian dollar (AUD) trended broadly lower overnight on Tuesday, as Australia’s latest PMIs reported that growth in the country’s private sector came close to stalling this month.
New Zealand dollar (NZD) undermined by risk-off flows
The New Zealand dollar (NZD) also weakened in overnight trade as a downbeat market mood limited the appeal of the risk-sensitive ‘kiwi’.