The greenback is gaining against euro and sterling after missed services PMI and retail numbers from the foreign currencies and positive U.S. data.
EUR/USD pushing down against 1.24
EUR/USD was eyeing 1.25 after Eurozone Markit Services PMI beat expectations overnight, but rising demand for the dollar and a slight decrease in the 10-year U.S Treasury bond yields held the pair around the 1.24 midpoint earlier this morning. Eurozone retail sales for December declined month over month and U.S. ISM non-manufacturing numbers beat expectations, pushing the pair lower just above the 1.24 mark.
This is ahead of European Central Bank President Mario Draghi’s testimony to the European Parliament in Strasbourg. Market watchers will be listening closely for indications regarding the ECB’s interest rate policy.
Sterling slides on services PMI miss
Cable dipped below 1.40 this morning as U.K. Markit services PMI missed expectations, U.S. non-manufacturing PMI beat estimates, and Brexit worries continue to weigh on the sterling.
The health of the U.K. services sector missed expectations for January after manufacturing and construction sentiments also missed estimates.
The country’s in-fighting on Brexit continues, with conservative MP Jacob Rees-Mogg recently claiming the Treasury has been “fiddling the figures” in regards to the Brexit economic impact estimates leaked last week.
The next big move for the pair could be on Thursday when the Bank of England holds its monetary policy announcement and interest rate decision. The first “Super Thursday” of the year will give the markets a direction on the BoE’s thinking on interest rates in the coming quarters.