Pound (GBP) finds support against safer peers
The increasingly risk-sensitive pound (GBP) was able to tick higher against some of its safer peers yesterday as the global market mood improved.
However, a lack of UK economic data meant GBP movement was limited overall.
Sterling could attract support today, if the UK’s final services PMI confirms an acceleration in activity in April. However, the looming local elections could mute movement.
Euro (EUR) uncertain in absence of data
The euro (EUR) traded in a wide range yesterday, with the common currency rudderless amid an absence of Eurozone economic data.
Overall, this saw the safer euro soften against riskier rivals amid the improving market mood.
The Eurozone's own PMI results could pressure EUR today, if they confirm that private sector activity in the bloc contracted last month.
US dollar (USD) pulls back as mood improves
The US dollar (USD) softened yesterday as market risk appetite improved, thereby dampening the appeal of the safe-haven currency.
In addition, a below-forecast US services PMI and a drop in job openings also placed some pressure on USD demand.
So far today, the ‘greenback’ remains on the back foot after Donald Trump hailed ‘great progress’ on an agreement with Iran. A soft ADP employment change reading later today could also subdue USD.
Canadian dollar (CAD) weakens despite forecast-beating PMI
The crude-linked Canadian dollar (CAD) slipped yesterday as oil prices trended lower. A better-than-forecast Canadian PMI failed to lift the ‘loonie’.
Looking ahead, Canada’s Ivey PMI could weigh on the Canadian dollar this afternoon, if it points to another month of contracting activity in April. Weaker oil prices could also dent CAD.
Australian dollar (AUD) rallies as risk appetite improves
The Australian dollar (AUD) surged overnight as hopes for peace in the Middle East boosted risk appetite, with Asian stock markets hitting record highs.
New Zealand dollar (NZD) jumps amid cheery trade
The New Zealand dollar (NZD) also soared overnight amid the risk-on mood and an unexpected decline in New Zealand unemployment.
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