Pound (GBP) buoyed by robust UK PMIs
The pound (GBP) trended broadly higher on Wednesday, following the publication of the UK’s latest PMIs.
July’s preliminary figures reported an acceleration of activity in both the manufacturing and services sectors, with the former seeing its strongest growth in two years amid a post-election ‘surge in demand’.
UK economic data is in short supply through the second half of this week, which could lead the pound to trade sideways today.
Euro (EUR) slips as Eurozone private sector growth almost stalls
The euro (EUR) was forced to relinquish its initial gains yesterday, in the wake of disappointing PMI figures from the Eurozone.
EUR investors were dismayed after the figures showed the bloc’s private sector only narrowly avoided stalling in July.
Coming up, this morning will see the publication of Germany’s latest IFO business climate index. Will an expected rebound in morale help to lift the euro today?
US dollar (USD) slides as US manufacturing sector contraction
After initially firming amid a risk-off market mood, the US dollar (USD) began to retreat yesterday, in response to the latest US PMIs.
While growth in the US service sector outpaced expectations this month, USD investors were spooked by the shock contraction in the manufacturing sector.
The latest US GDP figures will be in the spotlight today. Analysts predict growth in the US economy will have begun to accelerate again in the second quarter. Will this rebound in growth dampen Federal Reserve interest rate cut expectations and lift the US dollar?
Canadian dollar (CAD) slides as BoC cuts interest rates
The Canadian dollar (CAD) stumbled on Wednesday, after the Bank of Canada (BoC) concluded its latest policy meeting by cutting interest rates and lowering its GDP projections for 2024.
Looking ahead, the ‘loonie’ may remain vulnerable today amid softening oil prices.
Australian dollar (AUD) pressured by falling commodity prices
The Australian dollar (AUD) stumbled overnight on Wednesday as a fall in of oil, iron ore and copper prices reflected negatively on the commodity-linked ‘Aussie’.
New Zealand dollar (NZD) undermined in risk-off trade
The New Zealand dollar (NZD) also trended lower in overnight trade as a cautious market mood saw investors shun the risk-sensitive ‘kiwi’.