Pound bites back against dollar

Currencies Direct April 5th 2016 - < 1 minute read

Currency markets were fairly steady on Monday as much of the session was spent deciphering Friday’s US jobs data. With a positive figure coming out from the NFP, USD strengthened on Friday afternoon. The euphoria on the dollar didn’t carry on into this week however, as the pound bit back yesterday morning on the back of UK construction data and the dollar not being overly strong at the moment.

European stock markets open lower

European stock markets have followed their Asian counterparts this morning opening lower, following sharp falls in early trading. This came after a downturn in oil prices once again and the International Monetary Fund voicing its concerns yesterday regarding increasing problems within emerging markets. Crude oil fell 3% throughout the US session, extending its slide from the previous two trading sessions. With oil falling by over 70% in just under two years, eyes will be firmly on oil producers at their meeting later this month in order to curb production and boost oil prices once again. As a result the Japanese Yen outperformed as traders once again used the yen as a safe haven.

UK services PMI expected to come in slightly up

Today it’s the turn of the UK services PMI which is expected to come in slightly up from last month. Given that the previous data was the weakest reading since April 2013, this will be closely watched to see if the sentiment of recent Brexit headlines are affecting these figures. Elsewhere, across the pond we have US ISM non-manufacturing which is expected in marginally higher than last month. 

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