Pound (GBP) finds support against safer peers
The increasingly risk-sensitive pound (GBP) edged higher against several of its safer counterparts yesterday as the global market mood brightened.
However, with no UK economic data to drive trade, overall GBP movement remained limited.
Sterling may find support today if the UK’s final services PMI confirms that activity accelerated in April. However, the upcoming local elections could keep movement muted.
Euro (EUR) uncertain in absence of data
The euro (EUR) traded in a broad range yesterday, with the single currency lacking direction amid a quiet Eurozone data calendar.
Overall, this saw the safer euro weaken against its riskier rivals as market sentiment improved.
The Eurozone’s own PMI releases could weigh on EUR today if they confirm that private sector activity across the bloc contracted last month.
US dollar (USD) pulls back as mood improves
The US dollar (USD) softened yesterday as an improving market mood dented demand for the safe-haven currency.
In addition, a weaker-than-expected US services PMI and a decline in job openings also pressured USD appetite.
So far today, the ‘greenback’ remains on the defensive after Donald Trump praised ‘great progress’ on a deal with Iran. A softer ADP employment change reading later today could place further pressure on USD.
Canadian dollar (CAD) weakens despite forecast-beating PMI
The crude-linked Canadian dollar (CAD) slipped yesterday as oil prices moved lower. A stronger-than-forecast Canadian PMI failed to lift the ‘loonie’.
Looking ahead, Canada’s Ivey PMI could drag on the Canadian dollar this afternoon if it signals another month of contracting activity in April. Softer oil prices could also dent CAD.
Australian dollar (AUD) rallies as risk appetite improves
The Australian dollar (AUD) surged overnight as hopes for peace in the Middle East boosted risk appetite, with Asian stock markets climbing to record highs.
New Zealand dollar (NZD) jumps amid cheery trade
The New Zealand dollar (NZD) also jumped overnight amid the risk-positive mood and an unexpected fall in New Zealand unemployment.
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