Pound (GBP) strengthens on upbeat PMIs
The pound (GBP) rallied yesterday as GBP investors welcomed stronger-than-expected PMI figures from the UK.
The robust expansion in the UK’s private sector this month strengthened Sterling sentiment, as it was seen as weakening the odds of the Bank of England (BoE) cutting interest rates in September.
BoE Governor Andrew Bailey will speak at the Federal Reserve’s Jackson Hole symposium later today. Could some dovish remarks revive BoE rate cut bets and sink the pound?
Euro (EUR) slips on lacklustre Eurozone PMIs
The euro (EUR) faced pressure on Thursday in response to some mixed PMIs from the Eurozone.
While service sector growth beat expectations, this rise was a temporary uplift due to the Olympics in France. At the same time, growth in the bloc’s manufacturing sector struck a new eight-month low in August.
Meanwhile, in the absence of any notable Eurozone data, the euro may struggle to find direction during today’s session.
US dollar (USD) underpinned by robust US services PMI
The US dollar (USD) attracted support on Thursday after the latest US PMI figures reported a surprise improvement in US service sector growth.
Further support for the ‘greenback’ came from a sense of caution as the Federal Reserve’s annual Jackson Hole symposium got underway.
Fed Chair Jerome Powell is set to deliver his keynote speech at Jackson Hole later this afternoon. Expect his comments to be closely watched by USD investors as they seek insight into how quickly the Fed will cut rates in the coming months.
Canadian dollar (CAD) subdued amid soft oil prices
The Canadian dollar (CAD) was muted on Thursday as the appeal of the oil-linked currency was limited by persistently weak crude prices.
Canada will publish its latest retail sales figures later today. These could see the ‘loonie’ end the week on a sour note as economists forecast sales growth will have contracted again in June.
Australian dollar (AUD) buoyed by USD weakness
The Australian dollar (AUD) ticked higher overnight on Thursday as a pullback in the US dollar helped to bolster market risk appetite during the Asian trading session.
New Zealand dollar (NZD) firms despite weak retail sales
The New Zealand dollar (NZD) also firmed in overnight trade as the risk-on mood was enough to offset some lacklustre domestic retail sales figures.