Pound (GBP) uncertain following PMI survey
The pound (GBP) lacked a clear direction yesterday as markets digested the UK’s finalised PMI results.
Activity in the UK’s vital services sector was less strong than initially estimated in October, although it was still the fastest expansion since February.
Today, the spotlight falls on the Bank of England’s (BoE) interest rate decision. An expected rate hike could support Sterling, although the bank’s forward guidance may be the main focus for GBP investors.
Euro (EUR) mixed despite USD weakness
The euro (EUR) also lacked a clear trajectory yesterday despite the currency benefitting from its strong negative correlation with the weakening US dollar (USD).
EUR’s upside was offset by weaker Eurozone PMI results, while the bloc’s latest inflation figures failed to move the euro as they printed in line with forecasts.
A recovery in German factory orders in September could support the euro today, as could a forecast rise in Eurozone PPI in the same month.
US dollar (USD) slides following US mid-term results
The US dollar fell yesterday as the Democrats took control of both the Senate and the House in the mid-term elections.
In addition, an improving market mood and hopes for a diplomatic solution to the US-Iran war also pressured USD.
As the dust settles following the elections, USD investors may turn their attention to the latest initial jobless claims figure today. If new unemployment benefit claims remain low, the US dollar could attract some support.
Canadian dollar (CAD) slips as oil prices decline
The commodity-linked Canadian dollar (CAD) weakened yesterday as falling oil prices pressured the currency.
Today, crude prices could continue to determine CAD’s direction, with a further decline in oil likely to weigh on the ‘loonie’.
Australian dollar (AUD) flat despite upbeat trade figures
The Australian dollar (AUD) traded in a narrow range overnight, with strong Australian trade data failing to boost the ‘Aussie’.
New Zealand dollar (NZD) firms amid improving mood
The New Zealand dollar (NZD) ticked higher during Thursday’s Asian trading session as a risk-on mood supported the currency.
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