Pound (GBP) uncertain following PMI results
The pound (GBP) was mixed yesterday, as investors responded to the UK’s final services PMI for February.
Although the PMI showed signs of sticky services inflation, which could deter the Bank of England (BoE) from cutting interest rates too quickly, it also highlighted job cuts in the sector, raising concerns about the health of the British labour market.
British economic data thins out today. As a result, Sterling could struggle to find a clear direction.
Euro (EUR) mixed despite record-low unemployment
The euro (EUR) also traded without a clear direction yesterday, as Eurozone unemployment fell to a new record low but EU-US tensions flared.
After President Donald Trump threatened to halt trade with Spain due to its stance on the war in Iran, the EU hinted at retaliatory measures if one of its member states was targeted by the US.
A forecast recovery in Eurozone retail sales in January could provide the single currency with support today. EUR investors may also look to the European Central Bank’s (ECB) policy minutes for fresh impetus.
US dollar (USD) retreats as market mood improves
The US dollar (USD) slipped yesterday as the recent rally driven by risk aversion fizzled out.
Reports that Iranian operatives had reached out to the CIA to discuss terms to end the conflict brought cautious relief to markets.
Today, an expected uptick in US jobless claims last week could mute USD demand, although a prevailing risk-off mood may trump the data and underpin the US dollar.
Canadian dollar (CAD) declines as oil prices ease
The oil-sensitive Canadian dollar (CAD) pulled back from recent highs yesterday, as crude prices softened following the sharp upswing earlier in the week.
Oil prices could drive CAD again today amid a lack of Canadian data. If prices start climbing again then the ‘loonie’ might find support.
Australian dollar (AUD) falls amid renewed risk aversion
The Australian dollar (AUD) weakened overnight as the market mood soured amid the ongoing Middle East crisis, thereby dampening the risk-sensitive currency’s appeal.
New Zealand dollar (NZD) drops in cautious trade
The New Zealand dollar (NZD) also trended lower during the Asian trading session amid a gloomy market mood.
Never miss a movement. Create a free account with Currencies Direct to get the latest currency news delivered straight to your inbox. You can also set up rate alerts and check live rates 24/7.
