Pound and euro hit by weaker PMIs

Pound (GBP) dented by downbeat PMIs

The pound (GBP) was mixed on Wednesday, with Sterling dropping against its stronger peers following the UK’s PMIs.

The surveys showed a shock contraction in British service sector activity this month, raising concerns about the UK economy.

Sterling could face further losses today with the release of the Confederation of British Industry’s (CBI) latest surveys. If they contain signs that UK businesses are struggling, GBP could fall.

Euro (EUR) fluctuates lower amid volatile trade

The euro (EUR) witnessed volatility yesterday, trending lower overall, amid a rise in the US dollar (USD) and a risk-on market mood.

Weaker-than-forecast Eurozone PMIs also pressured EUR, with business activity in the bloc grinding to a halt this month.

Germany’s latest business climate indicator is due out this morning. The euro could slide if we see a steep decline amid fears around the impact of US tariffs on the Eurozone’s largest economy.

US dollar (USD) boosted by tariff comments

The US dollar was initially muted yesterday, with USD stabilising following Donald Trump’s comments on US tariffs on China.

The ‘greenback’ then rose in the afternoon when US markets opened, as further optimism around the possibility of US trade deals helped to ease fears that trade tensions could lead to a US recession.

Turning to today, new orders for durable goods in the US are expected to have increased in March, which could provide the US dollar with some support.

Canadian dollar (CAD) dented by falling oil prices

The crude-linked Canadian dollar (CAD) fell against its stronger rivals yesterday, with declining oil prices putting pressure on CAD.

Canadian data remains absent from the calendar today, potentially leaving the ‘loonie’ to trade on oil price dynamics.

Australian dollar (AUD) subdued in absence of data

The Australian dollar (AUD) was muted overnight as an uncertain market mood and lack of Australian data subdued the ‘Aussie’.

New Zealand dollar (NZD) kept afloat by positive data

The New Zealand dollar (NZD) was shored up by a stronger-than-expected consumer confidence index overnight, although the ‘kiwi’ struggled to push higher.

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