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.

*All rates shown are indicative of interbank rates and should only be used for indication purposes only. It is important to note that foreign exchange rates fluctuate and that rates may vary depending on the amount and the base currency that is purchased or sold. Rates are correct as of 8:00am UK time. CentralFX are not responsible for the rates shown.