Pound (GBP) Tumbles Across the Board
The Pound (GBP) collapsed yesterday, plummeting over 5% against the US Dollar (USD) as investors grow increasingly bearish towards GBP amid the coronavirus crisis.
Not helping Sterling’s case yesterday were comments from the new Bank of England (BoE) Governor Andrew Bailey who said that the UK is facing an economic emergency and that more measures would need to be taken to prevent a catastrophe.
With no light at the end of the tunnel, GBP investors are bracing for further losses today.
Euro (EUR) Steady as ECB Announces New Stimulus Measures
The Euro (EUR) struggled to find direction through much of Wednesday’s session as the EU took the unprecedented step to close its borders to non-citizens in an effort to contain the coronavirus.
However, the single currency found some support late in the evening after the European Central Bank (ECB) announced it would be launching a €750 billion pandemic emergency purchase programme.
It’s safe to assume that the coronavirus will continue acting as the main impetus of movement, potentially limiting the appeal of the single currency.
US Dollar (USD) Soars to New Multi-Year High
The US Dollar (USD) raced higher during yesterday’s session as another stock market sell-off and growing fears the coronavirus will causes a severe global recession kept investors flocking to the safe-haven currency.
Further fueling demand is USDs status as the world’s reserve currency, which is prompting a massive rush for USD as individuals and businesses attempt to improve their liquidity.
Coming up, USD investors will be looking to the Philadelphia manufacturing index for some insight into how the US economy is faring amid this month’s coronavirus disruption.
Canadian Dollar (CAD) Slumps as Oil Rout Continues
The Canadian Dollar (CAD) was knocked on Wednesday as oil prices resumed their slide, with WTI crude falling over 10% to $22 a barrel, striking a new 18-year low as global travel restrictions look likely to further erode oil demand.
Australian Dollar (AUD) Welcomes RBA Rate Cut
The Australian Dollar (AUD) found some modest support overnight on Wednesday as the Reserve Bank of Australia (RBA) held an emergency policy meeting in which it cut interest rates to a new record low in an attempt to support the domestic economic.
However these gains proved fleeting, with the ‘Aussie’ sliding at the opening of the European session as markets remain in a decidedly risk-off mood.
New Zealand Dollar (NZD) Weakened by Risk-Off Trade
The New Zealand Dollar (NZD) moved in tandem with the Australian Dollar (AUD) overnight – initially buoyed by the RBA rate cut but quickly relinquishing its gains amid the risk-off trade.
12:30 Philadelphia Fed Manufacturing Index (Mar)