Pound News: Sterling Pressured as Britain’s Services Sector Falls Short
While Britain’s key services sector continued to recover slightly last month, it was not able to recover as much as forecast. Britain’s services PMI came in at 49.4 according to Markit’s December report, still indicating a contraction in activity.
This dip in services activity, combined with Britain’s third national lockdown, is keeping investors anxious that the nation’s economy could take another severe hit from the coronavirus pandemic in the coming months.
Most of this week’s notable UK data has been published now, which will leave Sterling influenced by coronavirus developments in the coming days.
Euro News: Shared Currency Resilient despite PMI Miss
The Eurozone’s services and composite PMIs fell short of projections in this morning’s print. Despite this though, the Euro remained resilient as the data still showed a solid improvement over November.
The Euro is also more appealing as it gains on weakness in rivals like the Pound and US Dollar.
The Euro could come under pressure tomorrow as December’s inflation rate is forecast to show the bloc remain in deflation and retail sales are set to show a drop November.
US Dollar News: Democrat Party’s Senate Gains Weigh on USD
Investors sold the US Dollar overnight as the US Democrat Party won a seat in Georgia’s Senate runoffs. With one Senate race still to be called, the Democrat Party could take control of the Senate and boost government spending in the coming years.
A ‘blue wave’ in US Congress could boost US fiscal stimulus spending, in turn increasing global risk appetite and weighing on safe-haven demand for the US Dollar.
The Federal Reserve’s latest meeting minutes report will be published tonight, while tomorrow’s US non-manufacturing PMI data from ISM could drive additional movement.
Canadian Dollar News: Higher Oil Prices Keep CAD Buoyant
While the Canadian Dollar’s strong streak is running low on steam, prices of oil remain strong and continue to support the oil-correlated Canadian Dollar.
A surprise oil output cut, combined with Democrat Party performance in the Georgia Senate runoffs, has helped boost oil prices.
Canadian trade balance and Ivey PMI data will be published tomorrow, with shifts in oil prices also influencing the Canadian Dollar as well.
Australian Dollar News: Risk Sentiment Rises on US Political Hopes
The risk and trade-correlated Australian Dollar has seen its appeal boosted further by the latest US political developments. If the Democratic Party wins the US Senate runoffs in Georgia, it will take control of the Senate and could lead to more fiscal policy stimulus, increasing risk appetite.
Australia’s November trade balance report tomorrow and market sentiment will drive Australian Dollar movement through tomorrow’s session.
Thursday, 7th January
00:30 Australian Trade Balance
07:00 German Factory Orders
08:30 Eurozone Construction PMI
09:30 UK Construction PMI
10:00 Eurozone Confidence
10:00 Eurozone Inflation Rate
10:00 Eurozone Retail Sales
13:30 Canadian Trade Balance
13:30 US Trade Balance
15:00 Canadian Ivey PMI
15:00 US Non-Manufacturing PMI