Pound (GBP) directionless amid data drought
The pound (GBP) struggled to find momentum on Tuesday as another quiet UK data calendar left Sterling without a clear steer.
GBP traders also appeared reluctant to take positions ahead of tomorrow’s Bank of England (BoE) interest rate announcement.
Before then, the UK’s final services PMI release could inject some movement into the pound today. If the data confirms that service sector growth accelerated to a 21-month peak in January, GBP may find some support.
Euro (EUR) subdued ahead of key inflation release
The euro (EUR) remained under pressure yesterday, with the single currency failing to claw back losses from recent multi-month lows against several peers as the absence of fresh data kept EUR on the back foot.
Caution also dominated euro sentiment ahead of today’s Eurozone consumer price index, which is expected to show inflation slowing from 1.9% in December to 1.7% in January.
Should the CPI figures meet expectations, the euro could face renewed selling pressure in the run-up to the European Central Bank’s (ECB) policy decision tomorrow.
US dollar (USD) stalls as rebound loses momentum
The US dollar (USD) traded in a narrow range against most counterparts on Tuesday, with its recent bounce from multi-year lows appearing to run out of steam.
Muted market sentiment and a lack of US data releases helped keep USD movement limited.
Later today, weaker ADP employment figures alongside a cooling ISM services PMI for January could drag the US dollar lower.
Canadian dollar (CAD) supported by firmer oil prices
The commodity-linked Canadian dollar (CAD) edged higher against softer currencies yesterday, with the ‘loonie’ drawing modest support from rising oil prices.
Attention now turns to Canada’s final services PMI for January. Confirmation that the sector remains in contraction could place renewed pressure on the Canadian dollar.
Australian dollar (AUD) steady after conflicting data
The Australian dollar (AUD) was rangebound overnight after mixed domestic data, with Australia’s Ai Group industry index beating expectations while the services PMI saw a downward revision.
New Zealand dollar (NZD) weakens on surprise jobs data
The New Zealand dollar (NZD) slipped overnight after data showed unemployment unexpectedly increased in the fourth quarter of 2025.
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