Pound (GBP) pressured by weak PMI results
The pound (GBP) ended last week on the back foot after the release of disappointing UK PMI data.
Finalised figures for September saw the index downgraded from 51.9 to 50.8, revealing that growth in the UK’s dominant services sector slowed to its weakest pace since April and leaving overall private sector activity close to stagnation.
With few notable UK data releases due early this week, Sterling may take its cues from broader market sentiment.
Euro (EUR) gains as USD demand wanes
The euro (EUR) appreciated on Friday, benefitting from a softer US dollar (USD) as the single currency drew strength from its inverse correlation with the ‘greenback’.
That said, the euro’s upside was capped following the release of disappointing Eurozone producer price index data earlier in the session.
Looking ahead, the publication of the Eurozone’s latest retail sales figures will be in focus. Forecasts of a rebound in August could lend additional support to the euro.
US dollar (USD) retreats as services activity stagnates
The US dollar (USD) weakened at the end of last week after the latest ISM services PMI revealed an unexpected loss of momentum across the US service sector.
September’s reading fell from 52.0 to 50.0, missing expectations for a smaller dip to 51.7, and signalling that the service sector effectively stalled last month.
With the ongoing government shutdown creating uncertainty around forthcoming economic data, USD sentiment is likely to remain subdued today.
Canadian dollar (CAD) holds firm as crude prices climb
The Canadian dollar (CAD) traded in a narrow range on Friday, supported by a modest uptick in oil prices which helped offset the loonie’s earlier weakness.
Reports that OPEC members agreed on smaller-than-anticipated output increases have seen oil prices edge higher today, potentially offering further backing to CAD at the start of this week.
Australian dollar (AUD) lifted by RBA rate outlook
The Australian dollar (AUD) advanced through Monday’s Asian session, buoyed by growing expectations the Reserve Bank of Australia (RBA) will maintain a hawkish stance on interest rates.
New Zealand dollar (NZD) fluctuates amid shifting sentiment
The New Zealand dollar (NZD) saw mixed trade overnight, with volatility in global risk appetite prompting uneven movement in the ‘kiwi’.
Never miss a movement. Create a free account with TorFX to get the latest currency news delivered straight to your inbox. You can also set up rate alerts and check live rates 24/7.