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Sterling Makes Tentative Attempt at Clawing Back Losses

Pound News: GBP Attempts to Claw Back Losses

Yesterday saw the release of the UK’s construction PMI for December, which fell to a lower-than-expected 52.8.

However, there was an upside to the release. According to Markit’s Economics Associate Director, Tim Moore:

‘Construction firms remained resilient as optimism for the future rose to an eight-month high. This muted end to the year could not dampen hope completely as construction kept its head above water waiting for political resolutions to the Brexit crisis and a clear path ahead.’

The UK is set to see the release of the Markit services PMI this morning, with the forecast suggesting an increase from 50.4 to 50.7 in December. If this estimate proves accurate it could lend the Pound a little support before the weekend.

Euro News: Euro Fluctuates Ahead of Inflation Data

German unemployment figures are due to be released this morning, with the unemployment rate set to remain steady.

The Eurozone’s consumer and producer price indexes for December are also due out today and a dip in consumer price pressures is forecast.

If inflation does decline we can expect the euro to edge lower.

US Dollar News: USD Weighed Down by Manufacturing Data

The US Dollar came under pressure yesterday as the US ISM manufacturing index slid from 59.3 to 54.1.

This decline helped the Pound recoup much of its recent losses against the US Dollar and sent the currency lower against several other peers.

If today’s US employment figures show a decline in average earnings the US Dollar could have further to fall before the weekend.

Canadian Dollar News: Canadian Dollar to Slump on Back of Increased Unemployment?

The Pound Canadian Dollar (GBP/CAD) exchange rate extended losses on Thursday, but the Canadian Dollar could relinquish some of its recent gains later today.

Canada’s employment figures are expected to show an increase in the domestic unemployment rate, a development which could be CAD-negative.

Australian Dollar News: AUD Weighed Down by Continued US-China Trade Tensions

The Australian Dollar was pressured lower on Thursday as Apple indicated that lowered growth forecasts were the result of weakness in China.

China is Australia’s main trading partner, so if Chinese data continues falling short of forecasts demand for the Australian Dollar will remain limited.

Upcoming Data

Friday, 4th January

00:00     AUD TD Securities Inflation (December)

08:55     German Unemployment Rate (December)

09:00     EUR Markit Services PMI

09:30     UK Markit Services PMI

10:00     EUR Consumer Price Index (YoY, December)

13:30 USD Nonfarm Payrolls (December)

David Bayliss

Senior Currency Broker 

dbb@fcgworld.co.uk

 

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