Market Performance and Industry Influence Impact Global Currencies

The UK’s final services PMI showed a strong expansion in April, but the pound (GBP) faced pressure against its stronger counterparts on Friday. Speculation about rate cuts by the Bank of England (BoE) may have contributed to this downward trend. While market expectations point to rate cuts in August, some analysts suggested that the BoE could start easing its policies as early as June.

In contrast, the euro (EUR) saw gains on Friday, largely due to its inverse relationship with the weakening US dollar (USD). Additionally, fresh data revealed that the Eurozone’s jobless rate remained at a record low in March, further supporting the EUR’s performance.

However, the euro faced pressure this morning following a surprise decline in manufacturing orders from Germany. Nevertheless, strong exports from Germany and an anticipated rise in retail sales across the Eurozone might help boost the euro. The USD, on the other hand, plunged to multi-week lows on Friday after the release of the disappointing non-farm payrolls report, which showed a significant slowdown in US job creation.

The US dollar’s decline also impacted oil prices, leading to a weakening of the Canadian dollar (CAD) against several currencies on Friday. Canada’s Ivey PMI data release today may influence the ‘loonie’s’ performance, especially after a recent surge in economic activity in the country.

Meanwhile, the Reserve Bank of Australia (RBA) kept its policy unchanged and hinted at a possible peak in interest rates, causing the Australian dollar (AUD) to decline on Friday. The New Zealand dollar (NZD) remained range-bound due to a lack of economic data from New Zealand and a subdued market sentiment, keeping the risk-sensitive currency constrained.

Overall, global currencies staggered with market performance and industry influence, with various factors shaping their movements in the current economic landscape.