Sterling and Euro Slip on Weak PMI Data

Xe Corporate APAC

November 24, 2019 2 min read

The AUDUSD opens at 0.6792 (mid-rate) and the NZDUSD opens at 0.6411 (mid-rate) this morning.

Weak PMI data out of Europe and the UK saw both currencies slip lower on Friday during what was an otherwise quiet close to the trading week.

Flash data from IHS Markit showed the Euro-zone private sector grew at a much slower pace than expected in November, with the composite output index unexpectedly falling from 50.6 in October to 50.3 in November. The index had been forecast to rise to 50.9.

The British pound fared slightly worse than the Euro after their flash PMI data revealed service sector output slumped to a 40-month low of 48.5 in November following on from October’s 50.0 result.

The USD failed to take advantage of improving consumer sentiment after the University of Michigan revealed its consumer sentiment index for November was upwardly revised to 96.8 from the preliminary reading of 95.7. the result is a marked improvement from Octobers 95.5 reading.

Local drivers for the AUD over the course of the week include RBA Gov Lowe’s unconventional monetary policy speech along with the quarterly Capex data.

Local drivers for the NZD over the course of the week include quarterly retail sales data, monthly business confidence numbers and the RBNZ’s financial stability report.

Global equity markets closed marginally higher on Friday - Dow +0.39%, S&P 500 +0.21%, FTSE +1.22%, DAX +0.20%, CAC +0.20%, Nikkei +0.32%, Shanghai -0.63%.

Gold prices were little changed on Friday closing out the week at $1,462 an ounce. WTI Crude Oil prices slipped lower, down 1.1% closing out the week at $57.66 a barrel.