Pound (GBP) jumps on bumper PMI print
The pound (GBP) closed last week's session on a positive note, climbing to a six-month high against the US dollar (USD) in response to stronger-than-expected growth in the UK service sector this month.
January’s preliminary services PMI surged to its best levels since April 2024, which, coupled with a surprisingly upbeat retail sales print in December, helped to ease recent UK economic jitters.
While UK economic data is in short supply today, lingering UK economic optimism could help to prop up Sterling sentiment.
Euro (EUR) sidelined as PMIs disappoint
The euro (EUR) ticked lower against the majority of its peers on Friday as the Eurozone’s own PMI data proved disappointing.
The Eurozone private sector only expanded at a modest pace in January, with the composite PMI holding at 51.5.
However, there’s a chance for the single currency to bounce back at the start of this week, if Germany’s latest IFO business climate survey reports an improvement in morale this month.
US dollar (USD) extends selloff amid policy concerns
The recent US dollar (USD) selling bias remained firmly in place on Friday, with the currency plummeting to new multi-month lows.
Investors are growing increasingly wary of the ‘greenback’, as US President Donald Trump’s combative approach to foreign policy appears to be wearing thin.
Coming up, the US dollar may catch bids at the start of this week if data shows a rebound in US durable goods orders in November.
Canadian dollar (CAD) gains tempered by lacklustre retail sales data
The Canadian dollar (CAD) strengthened on the back of rising oil prices on Friday, but found its gains capped by a surprise contraction in domestic retail sales in December.
If oil prices remain bullish, the ‘loonie’ may be able to build on these gains through today’s session.
Australian dollar (AUD) wavers in risk-averse trade
The Australian dollar (AUD) was trapped in a narrow range through Monday’s Asian trading session, with risk-sensitive ‘Aussie’ falling out of favour as sentiment soured.
New Zealand dollar (NZD) undermined by downbeat mood
The New Zealand dollar (NZD) also struggled overnight amid a deterioration in market risk appetite.
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