Pound (GBP) wobbles amid weak PMIs
The pound (GBP) wavered yesterday, with Sterling taking a hit after the UK’s latest services PMI showed an unexpectedly sharp slowdown in activity this month.
An upbeat market mood initially helped the increasingly risk-sensitive pound rebound against safer peers, but GBP slipped back as sentiment soured in the afternoon.
Looking ahead, Bank of England (BoE) policymaker Megan Greene is due to deliver a speech later this evening. As Greene is one of the more hawkish voices in the bank’s Monetary Policy Committee (MPC), her comments could support the pound.
Euro (EUR) undermined by Russia worries
The euro (EUR) slipped yesterday amid growing geopolitical tensions, after drones near Oslo and Copenhagen airports grounded flights, leading some to speculate about Russian involvement.
The single currency drew little support from mixed PMI results, but managed to regain lost ground late in the session as a fading appetite for risk lifted the safer euro.
Today, EUR investors will be looking to Germany’s latest business climate indicator for fresh impetus. The index is expected to edge up to hit its highest level since May 2023, which could provide the euro with support.
US dollar (USD) subdued amid mixed Fed remarks
The US dollar (USD) was muted yesterday, with the safe-haven ‘greenback’ wavering as the market mood shifted from risk-off to risk-on.
Mixed comments from Federal Reserve officials also kept USD confined to a relatively narrow range, while the latest US PMIs from S&P Global failed to prompt much movement.
The ‘greenback’ could trade on market risk dynamics today amid a lack of US data. Could a souring mood drive the US dollar higher?
Canadian dollar (CAD) struggles despite rising crude prices
The crude-linked Canadian dollar (CAD) found itself on the defensive yesterday, despite an uptick in oil prices.
Canadian data is absent from today’s calendar. As a result, the ‘loonie’ is likely to trade on USD movement and oil price dynamics. Could another rise in crude buoy CAD exchange rates?
Australian dollar (AUD) jumps as inflation beats forecasts
The Australian dollar (AUD) leapt higher last night after new data showed Australian inflation rose from 2.8% to 3% in August, higher than the 2.9% forecast, thereby dampening bets on further Reserve Bank of Australia (RBA) interest rate cuts.
New Zealand dollar (NZD) buoyed by AUD correlation
The New Zealand dollar (NZD) enjoyed a modest lift overnight, thanks to its positive correlation with the ‘Aussie’.
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