The UK’s final services PMI confirmed a robust expansion in April, although the pound (GBP) suffered versus its stronger counterparts on Friday. Bets on rate reductions by the Bank of England (BoE) might have put some pressure on the pound. While August rate cuts are anticipated by the markets, some conjectured on Friday that the bank would start to ease its policies as early as June.
Moving forward, there is a dearth of UK data that moves the market. As a result, Sterling might have trouble deciding where to go.
Due in large part to its strong negative association with a declining US dollar (USD), the euro (EUR) gained gains on Friday. To further support the EUR’s gains, fresh statistics revealed that the jobless rate in the Eurozone remained at a record low in March.
The euro is under pressure this morning due to an unexpected drop in manufacturing orders from Germany, although the negative is being mitigated by robust exports from Germany. A predicted rebound in retail sales across the Eurozone later this morning could help the euro. Following the release of the most recent non-farm payrolls report, which revealed a significant and unexpected slowdown in US job creation last month, the US dollar plunged to multi-week lows on Friday.
Despite a weaker ISM services PMI, investors bought the drop, and the USD exchange rates recovered, but the “greenback” ended the day’s session lower overall. Neel Kashkari, a policymaker for the Federal Reserve, is scheduled to speak this afternoon. Might hawkish remarks strengthen the US currency?
The US dollar and oil prices, which are positively correlated with each other, caused the Canadian dollar (CAD) to weaken versus a number of its counterparts on Friday. Canada’s Ivey PMI is scheduled to release today. Could the ‘loonie’ strengthen following a month-long surge in economic activity in Canada?
The Reserve Bank of Australia (RBA) maintained its policy unchanged and hinted that interest rates may have peaked, which caused the Australian currency (AUD) to decline Friday night.
The ‘kiwi’ was trapped in a limited range due to a paucity of New Zealand economic data and a lukewarm market attitude, which caused the risk-sensitive New Zealand dollar (NZD) to be restrained overnight.
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