Weekly currency forecast: Strong UK services PMI to bolster the pound?
Currencies Direct October 21st 2024 - < 1 minute read
Looking to the week ahead, the pound may strengthen if the UK’s latest PMI figures report that UK service sector growth remains fairly robust this month.
Pound (GBP)
The UK’s preliminary PMIs for October are likely to drive movement in the pound (GBP) this week. If they show that growth in the services sector began to accelerate again following September’s slowdown, Sterling is likely to strengthen.
Euro (EUR)
The Eurozone will also release its latest PMIs this week. Expect to see the euro (EUR) weaken if October’s preliminary figures report the bloc’s private sector contracted for a second consecutive month.
US dollar (USD)
The US dollar (USD) may strengthen this week if markets remain broadly risk averse. Although an expected contraction in US durable goods orders last month could act as a headwind for the ‘greenback’ at the end of the session.
Australian dollar (AUD)
This week may see the Australian dollar (AUD) come under pressure if Australia’s latest PMI figures report growth in country’s private sector contracted again this month.
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Currencies Direct