Pound (GBP) sidelined by budget jitters
The pound (GBP) drifted within a narrow range on Thursday as uncertainty surrounding the upcoming autumn budget kept GBP investors on the defensive.
Sterling appetite was further dampened by rising expectations for a Bank of England (BoE) interest rate cut, following Wednesday’s softer inflation reading.
Adding to the pressure, a steep drop in UK retail sales last month is weighing on the pound this morning, with additional downside likely if today’s PMI figures signal a slowdown in private sector output.
Euro (EUR) falls on weak consumer confidence
The euro (EUR) slipped throughout Thursday’s session, dragged lower by persistent EU-China tensions and underwhelming consumer sentiment.
The Eurozone’s latest consumer confidence measure remained at –14.2 in November, defying forecasts that predicted a slight uptick to –14.
Looking to today, the bloc’s PMI releases may offer the euro some relief if they highlight improving momentum in the Eurozone’s private sector.
US dollar (USD) pressured by US jobs data
The US dollar (USD) struggled on Thursday after US payrolls delivered a mixed picture. September’s hiring surged to a five-month high, but unemployment edged higher and July’s payrolls were revised sharply lower.
This encouraged a dovish reassessment of Federal Reserve policy, although most investors still believe a December rate cut remains unlikely.
USD traders will now monitor the latest US S&P PMI readings. While less influential than the ISM surveys, November’s early estimates could nevertheless weigh on the US dollar if they indicate cooling private sector activity.
Canadian dollar (CAD) muted despite rebound in oil prices
The Canadian dollar (CAD) failed to gain momentum yesterday, even as oil prices staged a solid recovery following Wednesday’s decline.
As the week draws to a close, Canada’s upcoming retail sales figures may offer the ‘loonie’ some support if they show an improvement in consumer spending last month.
Australian dollar (AUD) steadies on upbeat PMI data
After sliding sharply late on Thursday, the Australian dollar (AUD) managed to regain its footing in overnight trade as domestic PMIs surprised to the upside, signalling a stronger pickup in private sector activity.
New Zealand dollar (NZD) supported by uptick in export growth
The New Zealand dollar (NZD) nudged higher overnight on Thursday after the country’s latest trade data revealed an unexpected rise in export volumes.
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