Tuesday evening saw the pound reach a one-month high against the US dollar. But early this morning, yet another indicator is showing that UK’s economic performance post-Brexit is falling. Services, the most important sector within the UK economy, took a blow this morning as Markit PMI data showed numbers dropping to a 7-year low. The pound slipped following the release but has pared those losses in the last few hours as investors look toward tomorrow’s crucial Bank of England meeting.
The US dollar has faltered recently as a result of last Friday’s weak GDP figures, but this morning’s positive ADP employment data makes room for investor optimism. The report shows that payrolls climbed higher than expected and demonstrates that the labor market and job growth remain strong. The euro, which had been strengthening against the US dollar the past few days, is trading weaker this morning as investors move their attention toward crucial US Nonfarm Payroll data coming Friday. The Canadian dollar, which strengthened early this morning as a result of an uptick in crude oil prices, has also trimmed some of those gains after today’s positive US data.
Finally, the Aussie dollar strengthened yesterday to a three-week high on speculation that the Reserve Bank of Australia would now wait before making a decision on further easing, but is trading choppily this morning as a result of disappointing Chinese PMI data.
EURUSD: Euro trims some of this week’s gains after positive US employment data.
GBPUSD: Pound slips after weak services PMI, but recovers losses in anticipation of tomorrow’s BoE meeting.
AUDUSD: Aussie dollar trading choppily following disappointing Chinese PMI.
USDCAD: Canadian dollar gains along with crude oil prices but loses some steam folllowing strong US ADP.