Pound (GBP) supported by services PMI
The pound (GBP) firmed against some of its weaker peers yesterday thanks to an upward revision to the UK’s services PMI for July.
However, as the finalised survey still revealed a slowdown, and with the Bank of England’s (BoE) policy decision looming, Sterling struggled against stronger currencies.
Movement in the pound may be muted today as GBP investors await tomorrow’s interest rate decision.
Euro (EUR) slips as PMI revised lower
The euro (EUR) initially softened yesterday as the Eurozone’s final services PMI for July was revised lower.
However, the common currency recouped some losses in the evening thanks to EUR’s negative correlation with a falling US dollar (USD).
After this morning’s German factory orders revealed an unexpected contraction in July, could a rebound in Eurozone retail sales offset the downside?
US dollar (USD) relinquishes gains following weak PMI
The US dollar initially ticked higher yesterday, with the safe-haven ‘greenback’ finally shaking off Friday’s dismal payrolls data and rising amid a risk-off market mood.
However, the ISM services PMI for July saw USD sharply reverse its gains in the afternoon. The survey missed forecasts to show that service sector activity slowed to a near standstill last month.
Market-moving US data is thin on the ground today, potentially leaving the safe-haven US dollar to trade on risk appetite.
Canadian dollar (CAD) subdued amid oil weakness
The Canadian dollar (CAD) traded without a clear trajectory yesterday, as falling oil prices subdued the crude-linked currency.
Looking forward, Canada’s latest services PMI could influence the ‘loonie’ today. If activity in the sector continued to contract last month, CAD could face pressure.
Australian dollar (AUD) rises amid risk-on mood
The Australian dollar (AUD) firmed overnight thanks to a better-than-expect Ai Group industry index and a risk-on market mood.
New Zealand dollar (NZD) buoyed by better-than-hoped jobs data
The New Zealand dollar (NZD) also climbed overnight as New Zealand’s latest jobs report showed that unemployment rose less than expected in the second quarter.
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