GBP Strengthens, USD Rebounds, and EU Shows Resilience.
- GBP strengthens on UK private sector improvement, with manufacturing and services sectors showing resilience.
- USD rebounds slightly as lower-than-expected jobless claims signal a robust labor market, but mixed private sector data caps gains.
- EUR shows resilience with slight uptick in EU composite PMI and strong UK services sector performance.
- ECB Minutes hint at gradual rate cuts, while Nvidia’s impressive earnings drive stock markets to new highs.
- Despite bullish equities, currency markets see minimal movement as PMI releases from different regions offset each other’s impact.
GBP: The Pound (GBP) gained ground as the UK’s private sector showed signs of improvement, with manufacturing on the rise and services holding steady. Economic growth is projected to hit 0.3% in Q1 2024, according to S&P Global Market Intelligence’s Chris Williamson. Bullish trading conditions also boosted the Pound, driven by a risk-on sentiment among investors.
USD: Despite initial weakness, the US Dollar (USD) recovered slightly as jobless claims came in lower than expected, indicating a robust labor market. Mixed private sector data tempered gains, with manufacturing exceeding forecasts but services slowing. The safe-haven appeal of the Dollar waned amid a bullish market.
EUR: Encouraging signs emerged for the EU and UK, with a slight uptick in the composite EU PMI and strong performance in the UK services sector. ECB Minutes hinted at a gradual approach to rate cuts. Market attention was also drawn to Nvidia’s earnings release, which exceeded expectations, driving stock markets to new highs. Despite a risk-on sentiment in equities, currency markets saw minimal movement, with PMI releases offsetting each other’s impact.