Pound (GBP) slips as PMI misses forecasts
The pound (GBP) softened yesterday after the UK’s services PMI for December disappointed GBP investors.
The final PMI printed at 51.4, downwardly revised from 52.1, to show sluggish growth in the UK’s vital services sector last month.
Market-moving UK data is thin on the ground today, potentially leaving the pound to trade without a clear directional bias.
Euro (EUR) slides as US-EU tensions remain high
The euro (EUR) weakened yesterday as ongoing tensions between the US and the EU over the future of Greenland weighed heavily on EUR exchange rates.
This overshadowed some positive news that the US reportedly supports a post-ceasefire defence force for Ukraine. Meanwhile, a sharper-than-expected cooldown in German inflation also dented the euro.
The focus for EUR investors today falls on the Eurozone’s consumer price index for December. If inflation eased as expected last month, the euro could weaken.
US dollar (USD) enjoys dip-buying and fading risk appetite
The US dollar (USD) managed to regain ground against some of its softer rivals yesterday as the weakened American currency attracted some dip-buying.
In addition, the safe-haven US dollar was also bolstered by caution creeping back into markets.
Today brings a flurry of US economic data, the most impactful of which may be the ISM services PMI. If the data underperforms – as the manufacturing PMI did earlier this week – the ‘greenback’ may face selling pressure.
Canadian dollar (CAD) uncertain amid USD correlation
The Canadian dollar (CAD) traded in tandem with the US dollar yesterday, while choppy oil prices also saw the crude-linked currency’s direction shift throughout the session.
Looking forward, Canada’s latest Ivey PMI could influence the Canadian dollar today. Another contraction in economic activity in December may weigh on the ‘loonie’.
Australian dollar (AUD) buoyed by sticky core inflation
The Australian dollar (AUD) rose last night, following Australia’s latest inflation figures. Although headline inflation cooled far more than forecast, the trimmed mean CPI showed signs of sticky core inflation.
New Zealand dollar (NZD) wobbles amid mixed sentiment
The New Zealand dollar (NZD) wavered without a clear direction overnight amid a mixed market mood.
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