Pound Sterling (GBP)
The Pound spent most of Monday’s session weaker against the majority of its most traded peers after a PMI report showed an unexpected slowdown in the UK’s manufacturing sector. According to Markit its UK manufacturing PMI fell from the 57.2 recorded in December to 56.7 in January. The figure disappointed the market as it was below economist expectations for a reading of 57.0. The data weighed upon the Pound throughout the session despite a separate report showing that new orders for exports rose to a three-year high.
US Dollar (USD)
The US Dollar weakened against the Euro on Monday afternoon after data showed that the US manufacturing sector expanded less than economists had been predicting in January. The final Markit US PMI reading came in at 53.7 in January rather than the 53.9 forecast and US ISM manufacturing dropped from a negatively revised 56.5 to 51.3 rather than meeting estimates for a reading of 56.0.
The Euro (EUR)
The Euro made gains against the Pound and US Dollar after a report showed that the Eurozone’s manufacturing PMI rose to a 32-month high in January. All of the regions struggling peripheral countries expanded and Greece returned to growth for the first time since August 2009. The currency remains under pressure however as concerns over low inflation weigh.
Australian Dollar (AUD)
The ‘Aussie’ edged higher against several of its most traded peers ahead of Tuesday’s Reserve Bank of Australia interest rate review. Expectations are high that the RBA will choose to keep rates on hold. The currency also found support from Chinese data which came in slightly firmer than economist expectations.
New Zealand Dollar (NZD)
The New Zealand Dollar managed to make gains against the U.S. Dollar on Monday but gains were held in check as unease over emerging markets continued to support safe haven demand for the ‘Greenback’.
Canadian Dollar (CAD)
The Canadian Dollar ticked higher against the US Dollar, Euro and Pound after a report showed that producer price inflation in the North American country rose by 0.7% in December and jumped by 1.4% on a yearly basis.