Pound (GBP) pressured as bond yields hit 19-year high
The pound (GBP) faced pressure yesterday as UK government borrowing costs continued to climb, with 10-year gilt yields touching their highest level since August 2007.
While bond yields soon eased off their 19-year high point, Sterling still struggled to attract support.
The UK’s final services PMI for August may underpin the pound today if it confirms that activity in the vital sector accelerated last month.
Euro (EUR) uncertain in absence of data
The euro (EUR) traded without a clear direction yesterday amid a lack of Eurozone economic data.
This left the common currency to see mixed movement against its peers, particularly amid some broader market volatility.
An expected jump in Eurozone producer price inflation in July could support EUR today, if it’s seen as further evidence of rising inflationary pressures in the bloc.
US dollar (USD) pulls back as mood improves
The safe-haven US dollar (USD) retreated yesterday afternoon as market sentiment improved.
In addition, the latest ADP employment change figure missed forecasts, with the US economy adding just 38,000 jobs in August – the smallest increase since January.
Later today, the ‘greenback’ could attract support if the latest ISM services PMI reports a slight improvement in activity last month.
Canadian dollar (CAD) rebounds as BoC warns of inflation risks
Easing oil prices initially weighed on the crude-linked Canadian dollar (CAD) yesterday. However, CAD rebounded as the Bank of Canada (BoC) warned of increased upside risks to inflation as it concluded its interest rate decision.
Today, Canada’s latest services PMI could pressure the ‘loonie’ if activity contracted again in August. Elsewhere, oil price dynamics could impact CAD.
Australian dollar (AUD) undermined by soft trade data
The Australian dollar (AUD) fell back overnight, despite a risk-on market mood, as weak Australian trade data subdued the currency.
New Zealand dollar (NZD) supported by improving mood
The New Zealand dollar (NZD) managed to recoup some of yesterday’s losses overnight as an increase in risk appetite underpinned the ‘kiwi’.
Never miss a movement. Create a free account with Currencies Direct to get the latest currency news delivered straight to your inbox. You can also set up rate alerts and check live rates 24/7.
