Pound (GBP) slips as services sector underwhelms
The pound (GBP) weakened throughout Thursday’s European session after the UK’s latest services PMI missed forecasts.
March’s finalised reading showed slower growth in the key services sector than initially estimated, with economists cautioning that the figures point to stagnation in the UK economy during the first quarter.
With no major UK data scheduled today, the pound is likely to remain vulnerable to shifts in broader market sentiment.
Euro (EUR) gains as US dollar weakens
The euro (EUR) firmed against most rivals yesterday, buoyed by its inverse relationship with a tumbling US dollar (USD).
EUR sentiment also received a lift from an upward revision to the Eurozone’s finalised March PMIs.
This morning’s German factory orders release revealed flat growth in February, falling short of expectations and potentially capping further euro gains.
US dollar (USD) plunges on mounting recession fears
The US dollar slumped to its weakest levels in months on Thursday, as markets reacted to growing concerns that Trump’s tariff package could derail the US economy.
The sharp decline prompted warnings from Deutsche Bank about a possible ‘crisis of confidence’ in the dollar, with investors questioning the direction of US economic policy.
Looking ahead, the dollar may remain under pressure if today’s US non-farm payrolls report signals a softening jobs market, reinforcing recession fears.
Canadian dollar (CAD) dips as crude prices collapse
The Canadian dollar (CAD) faltered yesterday as plunging oil prices weighed on the commodity-tied currency, driven by concerns that slowing global growth will sap demand for energy.
Canada’s upcoming employment report could add to CAD’s woes if it reports a rise in unemployment.
Australian dollar (AUD) pressured by rate cut speculation
The Australian dollar (AUD) tumbled overnight, surrendering recent gains as heightened US-China trade tensions fuelled speculation that the Reserve Bank of Australia (RBA) may be forced to accelerate interest rate cuts.
New Zealand dollar (NZD) weakens in risk-off trade
The New Zealand dollar (NZD) also trended lower overnight as investor caution saw demand for risk-sensitive assets like the ‘kiwi’ wane.
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