Pound (GBP) sidelined by budget jitters
The pound (GBP) was broadly rangebound on Thursday as autumn budget uncertainty kept GBP investors cautious throughout the session.
Sterling demand also remained suppressed amid an uptick in Bank of England (BoE) interest rate cut bets in the wake of Wednesday’s inflation print.
Meanwhile, a shock slump in UK retail sales last month is pressuring the pound this morning, with further losses likely if the UK’s latest PMIs report a moderation of private sector growth this month.
Euro (EUR) falls on weak consumer confidence
The euro (EUR) retreated through yesterday’s session, coming under pressure amid ongoing EU-China tensions and weak consumer morale.
The Eurozone’s latest consumer confidence index held at -14.2 in November, against forecasts for a modest improvement to -14.
Turning to today’s session, the Eurozone’s own PMIs could provide a boost for the euro if they point to resilience in the bloc’s private sector this month.
US dollar (USD) pressured by US jobs data
The US dollar (USD) stumbled on Thursday, following mixed US payrolls data. Payrolls spiked to a five-month high in September, but unemployment unexpectedly ticked higher, and payrolls in July were revised lower.
This stoked dovish Federal Reserve rate cut bets, although investors remained confident that a December rate cut will remain off the table.
USD investors will look to the latest US S&P PMIs for fresh impetus today. While not as influential as the ISM releases, November’s preliminary figures could still weigh on the US dollar if they show private-sector activity slowed this month.
Canadian dollar (CAD) muted despite rebound in oil prices
The Canadian dollar (CAD) struggled to attract support yesterday, despite a reasonably strong rebound in oil prices following Wednesday’s selloff.
Looking ahead, Canada’s latest retail sales figures could provide support for the ‘loonie’ as we go into the weekend, if they report a rebound in sales growth last month.
Australian dollar (AUD) steadies on upbeat PMI data
After plummeting late on Thursday, the Australian dollar (AUD) stabilised in overnight trade as domestic PMI data showed a stronger-than-expected improvement in private sector growth this month.
New Zealand dollar (NZD) supported by uptick in export growth
The New Zealand dollar (NZD) edged higher overnight on Thursday as New Zealand’s latest trade figures reported a surprise increase in exports.
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