Pound (GBP) wavers following mixed data
Trade in the pound (GBP) was a little uneven at the end of last week, as a result of some mixed UK economic data.
While UK retail sales smashed expectations, and February’s preliminary services PMI also beat forecasts, UK tax receipts proved underwhelming, raising fresh fears over potential tax hikes or spending cuts.
GBP investors are likely to look to speeches by Bank of England (BoE) policymakers Clare Lombardelli and Dave Ramsden for fresh impetus today. A dovish consensus could see the pound come under pressure.
Euro (EUR) pressured by weaker-than-expected PMIs
The euro (EUR) faced headwinds at the end of last week as the Eurozone’s own PMI figures fell short of expectations.
Friday’s data reported Eurozone private sector growth all but stalled this month, raising fresh concerns over the bloc’s economic trajectory and stoking European Central Bank (ECB) interest rate cut bets.
Meanwhile, the euro is on the rise this morning amid relief over the result of the German election, with the centre-right CDU/CSU alliance looking set to form a new grand coalition with the SPD.
US dollar (USD) gains countered by disappointing PMIs
The US dollar (USD) was initially supported on Friday as a cautious market mood saw investors favour the safe-haven currency.
However, the ‘greenback’ was forced to relinquish the bulk of these gains by the end of the session after the latest US S&P PMIs printed well below forecast.
US economic data is in short supply today, likely leaving movement in the US dollar to be driven by any headlines emerging from the Oval Office.
Canadian dollar (CAD) firms despite falling oil prices
The Canadian dollar (CAD) traded with modest gains on Friday, with the commodity-linked currency seemingly unfazed by a softening of oil prices.
Coming up, a speech by Bank of Canada (BoC) Deputy Governor Toni Gravelle could exert pressure on the ‘loonie’ later today, if he signals more monetary easing is needed.
Australian dollar (AUD) buoyed by China stimulus plans
The Australian dollar (AUD) trended higher through the start of this week’s Asian trading session, with the ‘Aussie’ being buoyed by the stimulus measures outlined in the Chinese government’s annual policy statement for 2025.
New Zealand dollar (NZD) firms in risk-positive trade
The New Zealand dollar (NZD) also strengthened overnight. The risk-sensitive ‘kiwi’ was bolstered by the positive shift in market sentiment as well as a weaker US dollar.
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