GBP/USD Declines to 1.3350, Awaiting UK/US PMI Data

The GBP/USD declined to near 1.3350, reflecting a modest recovery for the US Dollar. As forecasted, the Federal Reserve and Bank of England's recent interest rate decisions have stabilised their respective currencies. However, attention now shifts to today's flash readings of the UK and US Purchasing Managers' Index (PMI) data. Additionally, Friday’s release of the US Personal Consumption Expenditures (PCE) index, the Fed's preferred inflation gauge, due on Friday, could inject volatility into the USD and affect the GBP/USD pair. Meanwhile, concerns over the US economic outlook and market speculation about the timing of the next Fed rate cut are likely to heavily influence sentiment for the GBP/USD pair.

EUR/USD Muted Ahead of Eurozone PMI Data

The EUR/USD struggled to hold at around 1.1160, pressured by a weaker USD following the Fed's key monetary policy decisions. Philadelphia Fed President Patrick Harker’s Friday speech highlighted the strategic success of US central banks through recent economic challenges. European Central Bank (ECB) President Christine Lagarde emphasised the need for monetary policy flexibility in an evolving economic landscape. The Eurozone Manufacturing Purchasing Managers' Index (PMI) fell to 44.8 in September from 45.8 in August, missing the 45.6 forecast. Services PMI dropped to 50.5 from August’s 52.9, well below the expected 52.4. The HCOB Eurozone PMI Composite declined to an eight-month low of 48.9 in September, compared to the expected 50.6 and August's 51.0 Upcoming German economic data will be pivotal for the EUR/USD pair’s near-term direction.

GBP/EUR Rises Ahead of Eurozone/UK PMI Data

The GBP/EUR climbed to 1.1912, following the Bank of England's 'hawkish' decision, supported by strong inflation and retail sales data. A lack of significant Eurozone data left the Euro trading in a narrow range, allowing the Pound to gain the upper hand. Today's preliminary September PMIs for the UK and Eurozone are expected to be key drivers for the GBP/EUR exchange rate. Germany's latest IFO business climate report,anticipated to hover near seven-month lows, could exert pressure on the Euro. This week's Eurozone economic sentiment index and GfK consumer confidence index will further influence GBP/EUR movements.

AUD/USD Holds Steady Ahead of RBA Meeting

The AUD/USD gained ground following hawkish sentiment surrounding the upcoming Reserve Bank of Australia (RBA) monetary policy decision, a strong Australian employment report, and a weakened US Dollar in the wake of the Fed's interest rate decision. The People's Bank of China's (PBOC) move to maintain steady rates stabilised the Chinese yuan, further supporting the AUD. With Australia's monthly Consumer Price Index (CPI) and the RBA's rate decision on the horizon, today's US PMI data will play a crucial role in determining the direction of the AUD/USD pair.

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