Major currencies still showing little clear trend with ongoing rotation between the Dollar, Euro and Sterling. The Dollar has slightly outperformed the Euro, Swiss Franc and in particular Sterling in today’s trading session, with the Greenback seemingly helped by slightly higher US Treasury yields, a softer tone from the White House on the issue of the latent trade war with China and decent ADP US private sector jobs data for March.
At the same time European macro data are probably holding back Sterling and the Euro. The UK services PMI – a decent forward-looking indicator of economic activity in the all-important service sector – fell sharply in March to 51.7 (from 54.5 in February) while the Eurozone Composite PMI was broadly stable. The German economy remains strong but February industrial orders and the March Composite PMI underwhelmed.
