Pound (GBP) extends losses despite easing bond market pressure
The pound (GBP) softened against most of its peers yesterday, with the currency still feeling the lingering effects of the recent bond market turmoil, despite a sharp fall in UK borrowing costs.
This was reinforced by the release of the UK's latest services PMI, as August's finalised index saw growth revised lower.
Bank of England (BoE) Governor Andrew Bailey will speak later this morning, with his remarks potentially applying pressure to Sterling if they are interpreted as cautious.
Euro (EUR) firms as Eurozone PPI jumps
The euro (EUR) trended broadly higher on Thursday as the Eurozone's latest producer price index outpaced expectations.
Coupled with Tuesday's consumer price index, this points to an acceleration of inflationary pressures in the Eurozone and underpinned bets that the European Central Bank (ECB) will tighten monetary policy beyond a widely expected rate hike next week.
The publication of Germany's latest industrial data could extend the euro’s gains today as factory orders outpaced expectations in July.
US dollar (USD) slips despite impressive PMI data
The US dollar (USD) retreated through yesterday's session as a continued recovery in market risk appetite limited demand for the safe-haven currency.
The pullback in USD was also unaffected by the latest ISM services PMI, despite August's index reporting the US service sector expanded at its fastest pace in six months.
The latest US non-farm payroll report will be the primary focus for markets today, with the US dollar poised to fall if another lacklustre print raises any doubts about a Federal Reserve interest rate hike this month.
Canadian dollar (CAD) buoyed by rising oil prices
The Canadian dollar (CAD) traded with modest support on Thursday as rising oil prices bolstered the appeal of the commodity-linked currency.
Coming up, the 'loonie' could come under pressure today, if Canada's own jobs data reports employment growth slowed again last month.
Australian dollar (AUD) consolidates gains on RBA speculation
The Australian dollar (AUD) struck a new multi-month high overnight on Thursday, as the 'Aussie' continued to draw support from expectations for further rate hikes from the Reserve Bank of Australia (RBA).
New Zealand dollar (NZD) rallies in upbeat trade
The New Zealand dollar (NZD) also strengthened in overnight trade amid a broadly positive market mood.
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