Ahead of the publication of UK manufacturing PMI for May the Pound strengthened against the Dollar and Euro. Economists are expecting the index to have risen from 49.8 to 50.3 last month. If the result meets or exceeds estimates Sterling could consolidate gains as the European session continues.
GBP/EUR is trading in the region of 1.1719 and GBP/USD is trading in the region of 1.5254
With investors turning to higher risk assets in the wake of better-than-expected manufacturing figures for China, the safe-haven US Dollar posted modest declines against several of its riskier peers. The ‘Greenback’ is likely to experience fluctuations this afternoon following the publication of an ISM manufacturing report for the US.
USD/GBP is trading in the region of 0.6556 and USD/EUR is trading in the region of 0.7678
Better-than-expected manufacturing data for France, Germany and the Eurozone allowed the Euro to advance on its US counterpart this morning. While Eurozone PMI edged up to 48.3 German PMI hit 49.4 in May – taking the nation closer to the 50 mark which separates growth from contraction. The common currency also benefited from an increase in risk appetite, inspired by positive news from China.
EUR/GBP is trading in the region of 0.8535 and EUR/USD is trading in the region of 1.3017
Data revealing that manufacturing in China accelerated, indicating that the slowdown in the nation is easing, boosted higher-risk currencies overnight and allowed the Australian Dollar to gain on several of its main rivals. The ‘Aussie’ advanced despite a domestic report showing a less-significant-than-expected gain in retail sales. In April Australian retail sales gained by 0.2 per cent, slightly less than the 0.3 per cent gain predicted. Investors are now looking ahead to tomorrow’s Reserve Bank of Australia policy meeting. The central bank is expected to hold its benchmark rate at the current level of 2.75.
AUD/GBP is trading in the region of 0.6318, AUD/EUR is trading in the region of 0.7398 and AUD/USD is trading in the region of 0.9636
New Zealand Dollar
Chinese manufacturing PMI, which came in at 50.8 from 50.6, heightened the appeal of riskier assets during the Asian session. Consequently the ‘Kiwi’ posted a notable gain against the US Dollar and advanced on several of its other counterparts. Although economic news for New Zealand is a little thin on the ground this week, the nation’s currency is likely to fluctuate in response to global developments – particularly data for Australia, the US and China.
NZD/GBP is trading in the region of 0.5225, NZD/EUR is trading in the region of 0.6116 and NZD/USD is trading in the region of 0.7964
Better-than-forecast Canadian GDP allowed the ‘Loonie’ to climb against its peers during local trade on Friday, although the currency ended the session lower against the US Dollar as crude oil (a key Canadian commodity) declined. US ISM manufacturing figures, due out at 15:00 GMT, are likely to be responsible for Canadian Dollar movement in the hours ahead.
CAD/GBP is trading in the region of 0.6330, CAD/EUR is trading in the region of 0.7415 and CAD/USD is trading in the region of 0.9656
These exchange rates were correct as of 9:20 am