The Pound (GBP) trended higher at the start of this week, recouping some of its recent losses in response to easing Brexit uncertainty.
However, the Pound is likely to relinquish a good portion of these gains today with the publication of the UK’s latest GDP estimate.
Economists forecast that today’s data will show that the UK economy stalled at the end of 2019 as the country was paralysed by heightened political uncertainty in the run up to the general election.
The Euro (EUR) fell back on Monday as EUR investors were unsettled by the news that Annegret Kramp-Karrenbauer (AKK) would be resign as leader of Germany’s main governing party the CDU.
AKK was widely expected to succeed Chancellor Angela Merkel when she steps down next year, but her decision has now thrown considerable uncertainty over the political future of the Eurozone’s largest economy.
Looking ahead, the focus for EUR investors today will likely be on a speech by European Central Bank (ECB) president Christine Lagarde, as they look for any hints regarding the bank’s future policy plans.
The US Dollar (USD) trended higher through most of yesterday’s trading session as demand for the safe-haven currency remained strong amidst ongoing concerns over the coronavirus outbreak in China.
Economists remain uncertain how severe an impact the outbreak is likely to have on the global economy, driving skittish investors to flock to safe-haven assets like the ‘Greenback’.
Coming up, USD investors will look to Jerome Powell’s semi-annual testimony on monetary policy for fresh impetus as the Federal Reserve Chair delivers his latest assessment of the US economy.
The Australian Dollar (AUD) rallied overnight on Monday, rebounding from a decade low against the US Dollar (USD) as AUD sentiment was buoyed by expectations of more stimulus measures from China to help offset the impact of the coronavirus outbreak.