Pound (GBP) underpinned by upbeat PMIs
The pound (GBP) trended broadly higher through yesterday’s session as the UK’s latest PMIs surprised to the upside, suggesting activity in the private sector actually picked up in April, despite the disruption caused by the war in the Middle East.
However, the gains remained modest as the surveys also highlighted a worrying fall in business optimism and a startling rise in service sector costs over the past month.
This morning saw the release of the UK’s latest retail sales figures, which may extend additional support to Sterling after reporting a stronger-than-expected rebound in sales growth last month.
Euro (EUR) slides as Eurozone private sector shrinks
The euro (EUR) stumbled on Thursday as the Eurozone's latest PMIs reported a larger-than-expected decline in private sector growth.
The energy price crisis resulted in activity across the bloc falling to its worst levels since November 2024, raising fresh questions about whether the Eurozone economy can withstand an interest rate hike from the European Central Bank (ECB).
Germany’s latest IFO business climate index could fuel further losses for the euro today if April’s survey reports morale continued to decline this month.
US dollar (USD) firms amid Strait of Hormuz deadlock
The US dollar (USD) strengthened against most of its peers yesterday as the cautious market mood continued to funnel investors towards the safe-haven currency.
Sentiment continued to deteriorate amid concerns over the stalemate in the Strait of Hormuz, which remains a key sticking point in diplomatic efforts between the US and Iran.
Expect events in the Middle East to continue to drive movement in USD exchange rates today, with the US dollar potentially extending its gains if tensions continue to simmer.
Canadian dollar (CAD) buoyed by rising oil prices
The Canadian dollar (CAD) trended broadly higher on Thursday as Brent crude climbed back above $100 a barrel for the first time in two weeks.
Coming up, Canada’s latest retail sales data could act as a headwind for the ‘loonie’ today, if it reports sales growth slowed through March.
Australian dollar (AUD) pressured by cautious trade
The Australian dollar (AUD) remained on the defensive through today’s Asian trading session amid ongoing geopolitical uncertainty.
New Zealand dollar (NZD) slips amid investor risk aversion
The New Zealand dollar (NZD) also weakened in overnight trade as a result of the prevailing risk-off market mood.
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