Pound (GBP) weakens after manufacturing PMI revision
The pound (GBP) came under pressure yesterday after the UK’s final manufacturing PMI was revised lower.
The final reading came in at 51.9, down from the preliminary estimate of 52.5, indicating an unexpected loss of momentum in the UK’s manufacturing sector.
With no UK economic releases scheduled for today, the pound could struggle to establish a clear direction.
Euro (EUR) mixed following underwhelming data
The euro (EUR) traded in mixed fashion yesterday as investors digested the latest Eurozone economic releases.
A sharper-than-expected fall in German retail sales weighed on the single currency, while a weaker manufacturing PMI also limited upside. Even so, the euro was able to strengthen against some of its softer rivals.
As there is little Eurozone data due today, the euro may remain rangebound.
US dollar (USD) rebounds as ISM PMI beats forecasts
The US dollar (USD) advanced yesterday, with the currency benefiting from dip-buying after last week’s sharp decline.
Support for the ‘greenback’ was reinforced by the latest ISM manufacturing PMI, which exceeded forecasts and climbed to its strongest level since May 2022.
Attention now turns to June’s Job Openings and Labor Turnover Survey (JOLTS) and factory orders figures. These releases could drive movement in USD, although any reaction may prove modest if the results match expectations.
Canadian dollar (CAD) steadies despite weaker oil prices
The oil-sensitive Canadian dollar (CAD) started Monday on a softer footing as crude prices continued to ease. However, the currency recovered later in the session despite the absence of any obvious catalyst.
Looking ahead, Canada’s latest manufacturing PMI may pressure the ‘loonie’ if it suggests factory activity slowed to an almost stagnant pace last month.
Australian dollar (AUD) rises as commodity prices strengthen
The Australian dollar (AUD) moved higher overnight as recovering commodity prices and an improvement in market sentiment lent the currency support.
New Zealand dollar (NZD) muted despite improving sentiment
The New Zealand dollar (NZD) traded in a narrow range overnight, with a cautiously positive market mood supporting the ‘kiwi’ but failing to generate meaningful gains.
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