Pound (GBP) firms as services PMI revised higher
The pound (GBP) pushed higher yesterday, with Sterling attracting renewed demand after slipping into what looked like oversold territory.
Further support came from the UK’s final services PMI, which revealed a milder slowdown in November and a notable rise in input cost pressures, driven by increased wage growth.
With no major UK releases scheduled today, GBP movement may lack a clear catalyst, leaving the currency vulnerable to broader market shifts.
Euro (EUR) hindered by geopolitical unease
The euro (EUR) strengthened against several rivals yesterday, aided by an upgraded Eurozone services PMI reading and the single currency’s inverse relationship with a weakening US dollar (USD).
Its gains were nevertheless curtailed by fading optimism around a Russia-Ukraine ceasefire, as reports indicated that discussions between the US and Russia made minimal headway.
Today’s Eurozone retail sales figures may offer slight support if they show a modest rebound, while a speech from European Central Bank (ECB) Chief Economist Philip Lane could inject additional direction for EUR traders.
US dollar (USD) extends losses amid shifting Fed expectations
The US dollar tumbled yesterday as markets increasingly priced in the likelihood that Kevin Hassett – a close ally of Donald Trump – will assume the Federal Reserve Chairmanship in May 2026, potentially overseeing a quicker pace of interest rate reductions.
A 32,000 drop in US private payrolls during November deepened the American dollar’s troubles, reinforcing concerns about a cooling labour market and heightening expectations for coming Fed cuts.
Attention now turns to the latest initial jobless claims. Any rise in new unemployment filings could add to the sense that the labour market is losing momentum, likely weighing further on the ‘greenback’.
Canadian dollar (CAD) unsettled despite rising crude
The Canadian dollar (CAD) traded erratically yesterday as stronger oil prices clashed with downward pressure from the sliding US dollar.
Canada’s upcoming Ivey PMI is projected to show a marginal improvement in business activity for November, which may offer the ‘loonie’ some stability.
Australian dollar (AUD) lifted by upbeat trade numbers
The Australian dollar (AUD) advanced overnight after domestic trade data surprised to the upside, showing a larger trade surplus and firm export growth in October.
New Zealand dollar (NZD) steady amid mixed sentiment
The New Zealand dollar (NZD) moved within a tight range overnight, with an uncertain market mood leaving the ‘kiwi’ without a clear trajectory.
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.