Pound (GBP) wobbles following CBI data
The pound (GBP) wavered without a clear direction yesterday amid the publication of the Confederation of British Industry’s (CBI) latest industrial trends orders.
Although the CBI data beat forecasts, it still showed a deeply negative reading. Additionally, GBP investors were hesitant ahead of more impactful data today.
The pound is mixed this morning. While UK retail sales smashed forecasts, UK tax receipts were weaker than expected, which raised fears of coming tax hikes or spending cuts. The focus now shifts to the latest UK PMIs. Could sluggish service sector activity in February drive GBP lower?
Euro (EUR) unclear on mixed data
The euro (EUR) was mixed yesterday, with a softer producer price reading from Germany dampening Eurozone inflation expectations and weighing on EUR at the start of the session.
However, the euro’s negative correlation with the retreating US dollar (USD) and an improvement in Eurozone consumer confidence both helped to prop up the single currency.
This morning the Eurozone PMIs are in the spotlight. A slight uptick in private sector activity could lend EUR modest support.
US dollar (USD) falls as market mood brightens
The US dollar weakened yesterday as an increased appetite for risk saw investors ditch the safe-haven currency. The cheery tone came as Donald Trump hinted at a possible trade deal with China.
In addition, a rise in initial jobless claims in the US last week added to the pressure on USD.
USD exchange rates may be impacted by the American S&P PMIs this afternoon. Although less influential than the ISM surveys, today’s PMIs may support the US dollar if they show another expansion in business activity.
Canadian dollar (CAD) softens amid USD weakness
The crude-linked Canadian dollar (CAD) slipped against its stronger rivals yesterday, despite rising oil prices, as CAD’s positive relation with USD undermined the ‘loonie’.
Canada’s latest retail sales figures could impact CAD exchange rates today. Will a contraction in sales growth put pressure on the Canadian dollar?
Australian dollar (AUD) slips despite positive PMIs
The Australian dollar (AUD) fell overnight, despite better-than-expected PMI results, as a souring mood weighed on the risk-sensitive currency.
New Zealand dollar (NZD) avoids losses in spite of risk-off mood
The New Zealand dollar (NZD) traded sideways overnight, with the ‘kiwi’ resisting losses despite the gloomy mood and some downbeat trade data.
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