Australian Dollar (AUD) Recovers as Market Mood Improves
Yesterday, the Australian Dollar (AUD) began weakly as investors reacted to signs of deteriorating economic activity.
However, the losses brought about by downbeat PMI readings were reversed over the day, as a shift to bullish trade supported AUD.
Due to a light data calendar, the ‘Aussie’ may struggle to find a clear direction during today’s trade. Could a continued upbeat mood keep the risk-sensitive currency supported?
New Zealand Dollar (NZD) Buoyed by Risk-On Trade
On Thursday, the risk-sensitive New Zealand Dollar (NZD) strengthened against most major peers.
As a bullish market impulse took root, the ‘Kiwi’ managed to gain ground as investors cheered an apparent end to central bank tightening.
Today, NZD may face choppy trade as investors continue to mull the latest retail sales data.
Pound (GBP) Rises as UK Service Sector Returns to Growth
Thursday saw the Pound (GBP) strengthen following a surprise return to growth for the UK’s service sector.
The latest PMI surveys beat forecasts, with the UK’s vital service index printing at 50.5. With activity hitting a four-month high, this eased recession anxieties amongst GBP investors, bringing tailwinds for Sterling.
UK data releases are set to thin out today, which may leave the Pound unable to find a clear direction.
Euro (EUR) Supported by Slipping US Dollar
The Euro (EUR) managed to shrug off rather lacklustre PMI data yesterday. Although the manufacturing and services scores were slightly higher than forecast, they still showed contracting activity.
Despite this, EUR exchange rates climbed thanks to the Euro’s negative trading relationship with a weaker US Dollar (USD).
This evening, if German business optimism increased in November as expected, EUR could rise. However, any gains may be reversed if European Central Bank (ECB) President Christine Lagarde delivers a dovish speech.
US Dollar (USD) Falls amid Thanksgiving Market Closure
The US Dollar weakened over yesterday’s session as American markets were closed in observance of Thanksgiving.
This brought thin trading conditions for the ‘Greenback’ which, combined with cheery trade, served to weigh on USD.
The US Dollar could see volatility later in today’s session following the publication of November’s flash PMIs. If US service activity improves, USD could rise.
Canadian Dollar (CAD) Slides as Oil Prices Fall
The crude-linked Canadian Dollar (CAD) fell yesterday as oil prices slumped over the course of the session.
Tonight, the ‘Loonie’ could slip if Canadian retail sales in October stagnated as forecast.
Data Releases
Nov 24th 19:00 EUR DE Ifo Business Climate (Nov) 87.5
Nov 24th 20:00 EUR ECB President Lagarde Speech
Nov 24th 23:30 CAD Retail Sales (Sep) 0%
Nov 25th 00:45 USD Manufacturing PMI (Nov) 49.8
Nov 25th 00:45 USD Services PMI (Nov) 50.4