Daily Currency Update

USD - US Dollar

The USD is mixed against major currencies, stable in DXY after rising due to Fed's Kashkari's comments on persistent inflation and a stock market dip. Global stocks are following the US's lead, with US futures positive. Bond yields are up slightly after a previous fall. It's Non-Farm Payroll day, with expectations of job growth and a slight unemployment rate drop. Despite this, the USD is set for a weaker week in DXY, with potential for further decline despite possible short-term gains from positive job data.

CAD - Canadian Dollar

The CAD is slightly underperforming against the USD, affected by a previous drop in US stocks. Despite a recent rebound in USD, strong domestic growth and stable commodity prices should support the CAD, potentially limiting USD/CAD gains around 1.36. Canada's employment data is due, with an expected 25k job increase and wages likely rising to 5.0% Y/Y. Persistent high wages and inflation may keep policymakers from easing policy soon, especially with the upcoming Bank of Canada decision.

EUR - Euro

Eurozone economic data, including German Factory Orders, French Industrial Production, and Eurozone Retail Sales, fell short of expectations. However, the EUR has remained stable, supported by positive PMI data suggesting potential cyclical growth in the Eurozone. Despite this, the EUR's performance may still be influenced by the strength of the US economy and market skepticism about potential Fed rate cuts.

GBP - British Pound

The UK Construction PMI increased to 50.2 in March, the highest in six months, and above the expected 49.9. This rise, along with the Services and Manufacturing PMIs above 50, marks the first time in two years all three sectors are expanding, enhancing recovery prospects. Positive UK data and April's GBP-favorable trends suggest the Cable (GBP/USD) will likely remain resilient through minor declines.