PMI Data Boosts Euro, Pound as Dollar Weakens; Gold Hits High
Today’s markets are focused on preliminary PMI releases across the Eurozone, UK, and U.S., alongside developments in commodity markets and currency. A weaker U.S. Dollar has provided support for other major currencies, while gold and silver prices climb to multi-month highs.
Key Data Out Today
- Eurozone:
- Composite PMI rose to 50.2, signaling expansion for the first time in months.
- German Manufacturing PMI improved to 44.1, though still in contraction territory.
- United Kingdom:
- Services PMI exceeded expectations at 51.2, while Manufacturing PMI also rose to 48.2, though still below 50.
- United States:
- PMI reports are due later today, with markets expecting continued expansion in the services sector, though manufacturing may show signs of stagnation.
- Other News:
- The German government lowered its 2025 growth projection to 0.3% from a previous 1.1%, according to Handelsblatt, reflecting ongoing challenges in Europe’s largest economy.
- President Trump has called for immediate rate cuts, pressuring the Federal Reserve as economic risks mount.
Commodities
- Gold: Trading at $2,774.94 per troy ounce, gold is up 0.74% today, reaching a multi-month high. Safe-haven demand continues to support prices amid global uncertainty.
- Silver: Silver surged 1.40% to $30.889 per troy ounce, with strong weekly and monthly performances.
Currency Movements
EUR/USD
- EUR/USD: The euro jumped 0.86% to 1.05053, buoyed by stronger-than-expected PMI data from Germany and the Eurozone. German Manufacturing PMI rose to 44.1, beating the 42 consensus, while Eurozone Manufacturing PMI climbed to 46.1.
GBP/USD
- GBP/USD: The pound gained 0.72%, trading at 1.24426. UK Services PMI improved to 51.2, exceeding expectations and signaling expansion in the sector.
AUD/USD
- AUD/USD: The Australian dollar rose 0.65% to 0.63256, reaching a one-month high as the U.S. Dollar weakens.
NZD/USD
- NZD/USD: The Kiwi strengthened 0.60% to 0.57177, driven by positive sentiment following U.S.-China trade discussions.
USD/JPY
- USD/JPY: The dollar declined 0.47% against the yen, trading at 155.322. Comments from BoJ Governor Ueda on potential future hikes supported the yen.
USD/CNY
- USD/CNY: The dollar fell 0.66% to 7.23929, as improving risk sentiment and positive Chinese economic indicators supported the yuan.
USD/CHF
- USDCHF: The dollar weakened 0.49% to 0.90318, reflecting a softer dollar trend.
USD/CAD
- USDCAD: The pair dropped 0.41% to 1.43248 as Trump urged the Federal Reserve to cut rates, impacting the dollar broadly.
USD/MXN
- USDMXN: The Mexican peso surged, with the dollar falling 0.68% to 20.2538 amid positive market sentiment.
USD/INR
- USDINR: The rupee gained slightly, with USD/INR falling 0.36% to 86.1550 after mixed Indian PMI data.
Market Outlook
- Currencies: A weaker U.S. Dollar is likely to persist in the short term, benefiting risk-sensitive currencies like the AUD and NZD. Euro and Pound strength depends on further PMI confirmation of economic resilience.
- Commodities: Gold and silver remain well-supported by safe-haven flows and a soft dollar. However, any improvement in global risk sentiment could cap gains.
- Energy: Crude and Brent prices may remain range-bound as demand outlooks face headwinds despite OPEC+ interventions.
- PMI Focus: The upcoming U.S. PMI data will be closely watched for further insights into economic activity and its implications for Fed policy.