Pound (GBP) mixed following final PMI
The pound (GBP) traded in a wide range yesterday as the UK’s final manufacturing PMI failed to provide the currency with a clear directional bias.
The finalised index was revised marginally lower but still pointed to an improvement in factory activity last month.
With British data thin on the ground today, Sterling could end the week without a clear trajectory.
Euro (EUR) dented by USD strength
The euro (EUR) fell yesterday as the single currency came under pressure from its strong negative correlation with the rising US dollar (USD).
EUR was also dented by a sharp selloff in government bonds, particularly in France, which raised concerns about public debt across the wider Eurozone.
The Eurozone’s preliminary consumer price index is the focus for EUR investors today. Rising inflation in September could lift the common currency by fuelling bets on another European Central Bank (ECB) interest rate hike.
US dollar (USD) climbs amid safe-haven demand
The US dollar marched higher yesterday as a risk-averse mood boosted demand for the safe-haven currency.
USD maintained its strength through into the afternoon despite a weaker-than-forecast ISM manufacturing PMI.
Today, the US non-farm payrolls report is in the spotlight. Signs of healthy hiring activity in the US could underpin USD, while a softer-than-forecast reading would likely see the ‘greenback’ slide.
Canadian dollar (CAD) rallies as oil rises
The crude-linked Canadian dollar (CAD) leapt higher yesterday as a fresh jump in oil prices boosted the currency.
A lack of Canadian data today could leave the ‘loonie’ to trade on oil price dynamics. With crude sliding this morning, CAD exchange rates could come under pressure.
Australian dollar (AUD) flat in absence of data
The Australian dollar (AUD) traded in a narrow range overnight as a mixed market mood and lack of data left AUD with little impetus.
New Zealand dollar (NZD) choppy as consumer confidence disappoints
The New Zealand dollar (NZD) fluctuated overnight as New Zealand’s latest consumer confidence index printed slightly below forecasts.
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