Pound (GBP) uncertain in absence of data
A lack of British economic data left the pound (GBP) to trade without a clear trajectory on Tuesday.
GBP investors also seemed content to stay on the sidelines ahead of the Bank of England’s (BoE) interest rate decision, which will be announced tomorrow.
In the meantime, the UK’s final services PMI could see GBP movement pick up again today. Confirmation that service sector activity accelerated to a 21-month high in January could boost the pound.
Euro (EUR) struggles ahead of inflation figures
The euro (EUR) was subdued yesterday, with the currency unable to recover from multi-month lows against some rivals, as a lack of data left EUR on the defensive.
Investors were also wary of backing the euro ahead of today’s Eurozone consumer price index, which is forecast to show that inflation eased from 1.9% in December to 1.7% in January.
If today’s CPI figures print as expected, EUR could come under pressure ahead of the European Central Bank (ECB) decision tomorrow.
US dollar (USD) steady as recovery fizzles out
The US dollar (USD) traded sideways against many of its peers yesterday, as the currency seemed to stabilise following its recent recovery from multi-year lows.
A lack of US economic data and uncertain market mood also kept USD confined to a relatively narrow range.
Looking ahead, soft ADP employment data and a slowdown in the ISM services PMI for January could pressure the US dollar later today.
Canadian dollar (CAD) lifted by oil uptick
The crude-linked Canadian dollar (CAD) trended slightly higher against its softer rivals yesterday with the ‘loonie’ tracking a modest uptick in oil prices.
Canada’s final services PMI for January could influence CAD today, with confirmation of an ongoing contraction in activity potentially weighing on the Canadian dollar.
Australian dollar (AUD) flat following mixed data
The Australian dollar (AUD) traded sideways overnight Australia’s Ai Group industry index beat forecasts but the country’s services PMI was revised lower.
New Zealand dollar (NZD) dampened by rising unemployment
The New Zealand dollar (NZD) softened overnight after New Zealand unemployment unexpectedly rose in the fourth quarter of 2025.
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