Pound Sterling (GBP)

Following a day of high turbulence and overall losses for the Pound on Thursday, Sterling has held this pattern of weakness against the US Dollar and the Euro.

As expected, today’s services PMI for January has fallen, but by a greater amount than expected.

The Pound might be shifted upward by this afternoon’s European Council meeting (which Theresa May will be attending), as well as next Friday’s December trade balance figures. 

 

Euro (EUR)

On a day filled with Eurozone PMI announcements, the Euro has fallen against both the Pound and the US Dollar, owing to a lacklustre investor reaction to the morning’s composite and services figures.

As well as both Eurozone-wide PMI measures failing to be revised upwards in January, Spain and Germany have seen a services drop off.

This afternoon will see a meeting of European Council heads in Malta, where key future matters such as responses to Donald Trump and the Brexit situation are due to be discussed.

 

US Dollar (USD)

Having suffered during Thursday’s trading session on the news that Donald Trump had sparked a diplomatic incident with the Australian Prime Minister, the US Dollar has since recovered today.

Other recent US news has seen initial jobless claims in January reduce, though non-farm productivity in Q4 has dropped from 3.5% to 1.3%.

This afternoon’s major US news will cover unemployment and non-farm payrolls in January, which are respectively forecast to show stagnation at 4.7% and rise from 156k to 175k.

Any US Dollar gains could be tempered by the later ISM non-manufacturing PMI, which is set to dip from 57.2 to 57.

 

Australian Dollar (AUD)

After a significant slump in the AiG construction index for January, the Australian Dollar has dropped against the Pound and the US Dollar and edged up slightly against the Euro today.

In the coming week, Australian data will first come in on Monday when the ANZ job advertisement stats are released; these previously fell by -1.9%. Also notable will be the December retail sales result, which rose by 0.2% in November.

 

New Zealand Dollar (NZD)

The New Zealand Dollar has slumped today, with a recent jump in national unemployment being followed by an Infometrics forecast for several significant threats to NZ’s economic future.

Commenting on the situation, Infometrics Chief Forecaster Gareth Kiernan stated that;

‘[Donald] Trump has talked about 45% tariffs on Chinese imports, which would reduce American demand for Chinese products, dampening economic growth in our largest export market and undermining New Zealand’s export incomes’.

The next NZ data remains the coming Tuesday’s Global Dairy Trade price index, which previously rose by 0.6%.

 

Canadian Dollar (CAD)

Although crude oil costs have ticked up notably today, the Canadian Dollar has been unable to properly benefit, having dropped against the Pound, risen fractionally against the Euro and made no movement against the US Dollar.

The latest Canadian news, coming on Wednesday afternoon, showed a rise in the RBC manufacturing PMI for January, though this has failed to keep demand for the Canadian Dollar consistently high.

Looking ahead to next week, Canada’s December trade balance is expected on Tuesday, while Friday will bring the January unemployment rate which previously posted at 6.9%.