Pound (GBP) uncertain following uneventful UK CPI
The pound (GBP) moved without a clear direction yesterday as the UK’s latest consumer price index did little to shift expectations around Bank of England (BoE) interest rate hikes this year.
Headline inflation rose from 3% to 3.3% in March, as expected, while core inflation eased from 3.2% to 3.1%.
Today, GBP investors will likely focus on the UK services PMI for April. Stalling activity could create headwinds for Sterling.
Euro (EUR) slips as consumer confidence declines
The euro (EUR) stumbled yesterday as Eurozone consumer morale deteriorated more than forecast.
The bloc’s consumer confidence index slipped to -20.6 in April, its lowest level since December 2022, amid growing worries around the impact of the Middle East crisis on the Eurozone economy.
Turning to today, the Eurozone’s own PMIs could drive EUR movement, with weak private sector activity in April likely to weigh on the euro.
US dollar (USD) choppy amid shifting market mood
The safe-haven US dollar (USD) fluctuated yesterday as events in the Middle East triggered an uncertain market mood.
While news that the US-Iran ceasefire had been extended initially provided some relief to markets, ongoing attacks in the Strait of Hormuz later undermined risk sentiment.
Looking forward, the latest S&P Global PMIs for the US could impact the ‘greenback’. Although not as influential as the ISM surveys, today’s PMIs could dent USD if they report that activity remained weak this month.
Canadian dollar (CAD) steadies amid strong oil prices
The crude-linked Canadian dollar (CAD) held steady yesterday thanks to a modest rise in oil prices, although this wasn’t enough to see the ‘loonie’ gain ground.
A surge in Canadian producer prices in March could support CAD today, if it bolsters consumer inflation expectations.
Australian dollar (AUD) dips despite better-than-forecast PMIs
Stronger-than-expected PMI results failed to lift the Australian dollar (AUD) overnight, although they did cushion losses, as a risk-off market mood dragged on the currency.
New Zealand dollar (NZD) slides as sentiment sours
The New Zealand dollar (NZD) dropped during last night’s session as risk aversion dampened NZD demand.
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