Pound (GBP) edges higher amid improving mood
The pound (GBP) trended higher on Wednesday, supported by a brighter market mood that helped improve overall investor confidence in the currency.
That said, lingering concerns over the UK’s fiscal situation capped Sterling’s upside potential.
Today’s preliminary PMI figures from the UK could lend GBP further support, with forecasts pointing to stronger growth in the all-important services sector.
Euro (EUR) retreats ahead of ECB announcement
The euro (EUR) softened yesterday as traders grew increasingly cautious in the run-up to the European Central Bank’s (ECB) latest policy decision.
Sentiment was also dampened by the Eurozone’s latest consumer confidence results, which continued to show widespread pessimism.
All eyes now turn to today’s ECB decision. While rates are expected to remain on hold, a hawkish signal that the current cycle of cuts may be nearing its end could give the euro a lift.
US dollar (USD) loses ground after trade update
The US dollar (USD) slipped on Wednesday following fresh developments in global trade.
A newly struck trade deal between the US and Japan spurred risk appetite, which in turn weighed on demand for the safe-haven ‘greenback’. Meanwhile, ongoing pressure from President Trump on Federal Reserve Chair Jerome Powell also kept USD on the defensive.
Today’s focus will be on the US S&P PMIs. While they don’t carry the weight of the ISM figures, a solid print could provide the dollar with some support.
Canadian dollar (CAD) struggles amid oil weakness
The Canadian dollar (CAD) saw limited movement on Wednesday as a dip in oil prices undercut appetite for the oil-sensitive currency.
This afternoon, Canada’s latest retail sales data could drive further CAD volatility, with economists anticipating a slowdown in consumer spending.
Australian dollar (AUD) rallies on upbeat data
The Australian dollar (AUD) climbed overnight as stronger-than-expected PMI results showed a marked pickup in Australia’s private sector activity this month, lifting the risk-sensitive currency.
New Zealand dollar (NZD) lifted by upbeat sentiment
The New Zealand dollar (NZD) also advanced overnight, supported by a broad improvement in market risk appetite that helped boost demand for the ‘kiwi’.
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