EUR/USD slips on German manufacturing woes
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Daily Currency Update
GBP/USD has pushed higher this morning as stock market gains saw the dollar weaken. GBP/USD briefly touched 1.27 for the first time since February 2nd aided by some stellar results from tech giant Nvidia which helped push all major stock markets into positive territory. When stocks advance then the safe haven dollar tends to weaken, and this was seen earlier this morning before the pound pared its gains. From the UK we had the monthly PMI results with the important Services reading coming in a touch above estimates at 54.3 v expectations of 54.2. This better-than-expected print was tempered somewhat by the Manufacturing number missing the target at 47.1 versus the expected 47.5. GBP/USD has slipped back to around 1.2670 and GBP/EUR is around 1.1680 continuing to trade in its recent range.Key Movers
Although stock markets are still in positive territory the advance has fallen back a touch as the latest PMI data from Germany saw a much worse-than-expected Manufacturing print. The reading of 42.3 was far worse than the 46.1 eyed and its worst reading since November 2023. EUR/USD was heading towards 1.09 however this big undershoot saw it fall back towards the 1.0850 level rapidly. This PMI reading backs up recent comments from the Bundesbank that the Eurozone's biggest economy is likely to see its recession continue into the first quarter of 2024 acting as a headwind to the shared currency. There was some positivity however as the Eurozone saw its Services reading come in at 50 ending seven consecutive months of contraction. This afternoon's big data will be the US PMI numbers due at 2:45 pm.Expected Ranges
- GBP/USD: 1.2580 - 1.2710 ▲
- GBP/EUR: 1.1655 - 1.1740 ▲
- GBP/AUD: 1.9190 - 1.9330 ▲
- EUR/USD: 1.0790 - 1.0900 ▲