Pound (GBP) buoyed by revised manufacturing PMI
The pound (GBP) found modest support yesterday, with the release of the UK’s latest manufacturing PMI.
May’s finalised index saw growth in the factory sector revised to its highest level in four years, although with the caveat that this momentum is likely to be temporary as firms front-loaded purchases to beat potential price rises due to the crisis in the Middle East.
GBP investors will look to a speech by Bank of England (BoE) policymaker Megan Greene for fresh impetus today. As one of the BoE’s more hawkish members, her remarks could help to underpin Sterling.
Euro (EUR) stumbles as German retail sales contract
The euro (EUR) trended lower on Monday after Germany’s latest retail sales figures showed that consumer spending in the Eurozone’s largest economy has shrunk for four consecutive months.
These losses were reinforced by a European Central Bank (ECB) survey showing that consumer inflation expectations remained flat in April.
Turning to today’s session, the euro has a chance to recoup these losses as an expected acceleration in Eurozone inflation last month is likely to reinforce bets for an ECB interest rate hike next week.
US dollar (USD) strengthens on impressive factory PMI
The US dollar (USD) accelerated through the start of this week’s session as last month’s ISM manufacturing PMI beat forecasts, with the US factory sector recording its strongest growth since May 2022.
This built on gains made earlier in the session as fresh military strikes in the Middle East over the weekend underpinned demand for safe-haven assets.
Coming up, the US dollar may maintain a positive trajectory today if US job openings continued to outpace expectations in April.
Canadian dollar (CAD) remains pressured by weak GDP data
The Canadian dollar (CAD) ticked lower on Monday as it continued to be pressured by data published last week that showed Canada slipped into a technical recession in the first quarter.
Looking ahead, the ‘loonie’ may be able to recoup some of these losses if oil prices continue to tick higher through today’s session.
Australian dollar (AUD) rebounds as risk appetite improves
The Australian dollar (AUD) firmed overnight on Monday, recouping some of yesterday’s gains as market risk appetite improved late in the Asian session.
New Zealand dollar (NZD) buoyed by cautious optimism
The New Zealand dollar (NZD) also began to mount a recovery in overnight trade as market sentiment turned more optimistic.
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.
