Pound (GBP) brushes off weaker inflation figures
The pound (GBP) edged up against its weaker peers yesterday, with GBP investors shrugging off a softer-than-forecast UK consumer price index.
While headline inflation eased from 3.3% to 2.8% in April, it did little to impact Bank of England (BoE) interest rate hike bets. Economists still expect UK inflation to rise through 2026.
Turning to today, the UK’s latest services PMI could drive GBP movement. An expected slowdown in activity could weigh on Sterling.
Euro (EUR) subdued amid upbeat trade
The euro (EUR) moved without a clear trajectory yesterday as fresh Eurozone data failed to provide a clear catalyst.
This saw the safer single currency trade on risk appetite, with EUR losing out to riskier rivals.
The Eurozone’s own PMI surveys will be the focus for EUR investors today. An ongoing contraction in private sector activity in the bloc may undermine the euro.
US dollar (USD) stumbles as risk appetite returns
The US dollar (USD) initially edged higher yesterday, with the currency benefitting from safe-haven flows.
However, USD retreated in the afternoon as market sentiment recovered. A slight pullback in Federal Reserve rate hike bets also undermined the American dollar.
Although less influential than the ISM releases, the latest US PMI results from S&P Global could impact USD today. Could weak private sector activity dent the US dollar?
Canadian dollar (CAD) retreats in tandem with oil
The crude-linked Canadian dollar (CAD) trended lower yesterday as cooling oil prices dented the ‘loonie’.
Oil price movements may continue driving the Canadian dollar today, potentially leaving CAD exposed to volatility.
Australian dollar (AUD) tumbles as unemployment rises
The Australian dollar (AUD) fell sharply overnight after new data showed an unexpected jump in Australian unemployment last month.
New Zealand dollar (NZD) softens as sentiment sours
The New Zealand dollar (NZD) trended lower overnight as a risk-off mood in Asian markets weighed on the ‘kiwi’.
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