Pound (GBP) mixed amid lack of data
An absence of UK economic data saw the pound (GBP) trade without a clear direction yesterday.
While the increasingly risk-sensitive UK currency rose against some of its safer peers, it struggled against its high-yield rivals.
Looking ahead, the UK’s final PMI results could act as a headwind for the pound during today’s session, if they confirm that activity in the vital services sector declined sharply last month.
Euro (EUR) muted in spite of rising inflation
The euro (EUR) also faced mixed movement yesterday, with EUR investors seemingly unimpressed by the Eurozone’s latest consumer price index.
The CPI figures revealed that inflation accelerated last month. However, as the data was broadly in line with market expectations, they did little to alter European Central Bank (ECB) interest rate expectations.
Weak PMI results could weigh on the euro today. However, a sharp rise in Eurozone producer price inflation may offset the downside, if it strengthens bets on an ECB rate hike next week.
US dollar (USD) recovers on positive jobs data
The US dollar (USD) initially softened yesterday as a cautiously upbeat tone in markets sapped the appeal of safer currencies.
However, USD managed to regain ground in the afternoon following the latest Job Openings and Labor Turnover Survey (JOLTS), which showed a jump in vacancies in April.
Today we have the ADP employment change figure and ISM services PMI for May. Robust economic data could underpin USD exchange rates.
Canadian dollar (CAD) wobbles amid oil volatility
The Canadian dollar (CAD) faced choppy movement yesterday, with the commodity-linked currency tracking fluctuations in the oil market.
Canada’s latest PMI results could pressure CAD today, if a continued contraction in private sector activity reinforces concerns around the country’s economic health.
Australian dollar (AUD) falls following underwhelming GDP
The Australian dollar (AUD) weakened overnight as new data showed Australian GDP slowed more than forecast in the first quarter of 2026.
New Zealand dollar (NZD) retreats amid anxious mood
The New Zealand dollar (NZD) also slipped overnight, with fresh strikes in the Middle East dampening support for the risk-sensitive currency.
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