Pound (GBP) fluctuates after final PMI release
The pound (GBP) moved within a broad range yesterday, with the UK’s final manufacturing PMI offering little direction to the currency.
Although the final reading was revised slightly lower, it continued to signal an improvement in manufacturing activity last month.
With little in the way of UK economic data due today, sterling may struggle to establish a clear direction as the week draws to a close.
Euro (EUR) slips as USD strengthens
The euro (EUR) weakened yesterday as its inverse relationship with the strengthening US dollar (USD) weighed on the single currency.
The euro also faced headwinds from a sharp selloff in government bonds, particularly in France, which fuelled wider concerns over public debt levels across the Eurozone.
Today, the Eurozone’s preliminary consumer price index is likely to attract the attention of EUR investors. An acceleration in inflation during September could support the common currency by strengthening expectations of another European Central Bank (ECB) interest rate hike.
US dollar (USD) advances on safe-haven demand
The US dollar climbed yesterday as risk aversion drove investors towards the safe-haven currency.
The ‘greenback’ retained its upward momentum into the afternoon, despite the latest ISM manufacturing PMI falling short of expectations.
Attention now turns to today’s US non-farm payrolls report. Evidence of robust hiring in the US could provide further support for USD, whereas a weaker-than-expected result would likely drag the currency lower.
Canadian dollar (CAD) rallies as oil prices climb
The oil-sensitive Canadian dollar (CAD) surged yesterday as a fresh increase in crude prices lent support to the currency.
With no significant Canadian economic releases on the calendar today, the ‘loonie’ may remain sensitive to movements in oil prices. As crude prices retreat this morning, CAD exchange rates could face renewed pressure.
Australian dollar (AUD) subdued amid quiet data calendar
The Australian dollar (AUD) moved sideways overnight, with a mixed market mood and an absence of economic data leaving the currency without a clear catalyst.
New Zealand dollar (NZD) fluctuates as consumer confidence misses forecasts
The New Zealand dollar (NZD) traded unevenly overnight after the latest New Zealand consumer confidence index came in marginally below market expectations.
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