Pound (GBP) Muted on Gloomy UK Economic Outlook
Trade in the Pound (GBP) was mixed on Monday, with the UK currency struggling to find momentum as analysts raise concerns over the coronavirus’ impact on the UK economy.
Economists at the Centre for Economics and Business Research (CEBR) forecast the crisis could cut UK growth by as much as 15% over the next three months.
In the meantime, the main concern for GBP investors will be the potential introduction of stricter restrictions by the UK government as it seeks to contain the growing outbreak.
Euro (EUR) Drops as Europe’s Coronavirus Outbreak Grows
The Euro (EUR) was forced to retreat at the start of the week after figures published over the weekend showed Europe is still to get to grips with its coronavirus outbreak.
Further weighing on EUR sentiment was the publication of the Eurozone’s latest economic sentiment index, which suffered its sharpest decline on record this month as the bloc was rocked by the coronavirus.
Coming up today, Germany’s latest jobs report will be in the spotlight. The report will provide the first insight into how the coronavirus crisis has impacted employment levels in the Eurozone’s largest economy this month.
US Dollar (USD) Rallies amid Renewed Coronavirus Concerns
The US Dollar (USD) trended higher yesterday, recouping some of last week’s losses as demand for the safe-haven currency was buoyed amid fresh concern over the global economic impact of the coronavirus.
However, the upside in the ‘Greenback’ was capped somewhat as data showed the Dallas manufacturing index plummeted to an all-time low of -70 in March due to the coronavirus pandemic.
Looking ahead, USD investors will be keeping a close eye on the US coronavirus outbreak as the number of infections continue to grow exponentially.
Canadian Dollar (CAD) Slides amid Continued Oil Slump
The Canadian Dollar (CAD) got off to a poor start this week, with the oil-sensitive ‘Loonie’ taking another knock as WTI crude prices fell to $20 a barrel.
This downtrend may persist later today as Canada’s latest monthly GDP figures are forecast to report domestic growth slowed to 0.1% in January.
Australian Dollar (AUD) Buoyed by Rebound in China’s Factory Sector
The Australian Dollar (AUD) jumped in overnight trade on Monday after China reported a surprise return to growth for its manufacturing sector in March as Beijing started to lift its coronavirus lockdown.
New Zealand Dollar (NZD) Supported by Upbeat Chinese Data
The New Zealand Dollar (NZD) also found some support in overnight trade, with the currency benefitting from an apparent V-shaped recovery in China’s manufacturing sector.