Pound (GBP) eases after services PMI disappoints
The pound (GBP) edged lower yesterday after the UK’s final services PMI for December fell short of expectations, dampening confidence in the currency.
The index was revised down to 51.4 from an initial reading of 52.1, signalling only modest growth across the UK’s crucial services sector at the end of last year.
With little in the way of high-impact UK data scheduled for today, the pound may struggle to find clear direction and could drift in response to broader market sentiment.
Euro (EUR) retreats as US-EU frictions weigh
The euro (EUR) came under pressure on Wednesday as persistent tensions between the US and the EU regarding Greenland continued to drag on the single currency.
These concerns overshadowed reports that the US is supportive of a post-ceasefire security force for Ukraine. At the same time, a sharper-than-forecast slowdown in German inflation further undermined the euro.
Attention now turns to the Eurozone’s December consumer price index. A cooling in inflation, if confirmed, may leave the euro vulnerable to further losses.
US dollar (USD) recovers on dip-buying and cautious mood
The US dollar (USD) clawed back some ground against weaker peers yesterday as investors took advantage of the currency’s recent softness.
Renewed caution in global markets also lent support to the safe-haven ‘greenback’.
Later today, a batch of US economic releases is due, with the ISM services PMI likely to be in focus. A disappointing reading, following this week’s weak manufacturing data, could prompt fresh selling pressure.
Canadian dollar (CAD) directionless amid USD correlation
The Canadian dollar (CAD) moved largely in step with the US dollar yesterday, while volatile oil prices added to the currency’s uneven performance.
Looking ahead, Canada’s Ivey PMI may influence CAD sentiment. Another month of contraction in December could weigh on the ‘loonie’.
Australian dollar (AUD) lifted by stubborn core inflation
The Australian dollar (AUD) advanced overnight after the release of Australia’s latest inflation data. While headline inflation slowed more sharply than expected, the trimmed mean measure pointed to persistent underlying price pressures.
New Zealand dollar (NZD) unsteady amid mixed sentiment
The New Zealand dollar (NZD) traded without a clear trend overnight, as conflicting signals in wider markets left investor sentiment finely balanced.
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.