Pound (GBP) Mounts Recovery as First Quarter Comes to a Close
The Pound (GBP) advanced again yesterday, with the UK currency benefitting from quarter-end flows having fallen into oversold territory in recent weeks.
Sterling also found some support from Tuesday’s economic data, with GBP investors cheering a surprise uptick in UK business investment in 2019.
In the spotlight for GBP investors this morning will be the UK’s final manufacturing PMI for March. The report could see factory activity revised even lower as the final release will also cover the period after the UK imposed its coronavirus lockdown.
Euro (EUR) Weakens amid Fears of Unrest in Italy
The Euro (EUR) trended lower on Tuesday as fears over social unrest in the south of Italy added to the country’s woes, with the nation already wrestling with Europe’s largest coronavirus outbreak.
Authorities have warned of possible looting and rioting in the south of the country as ferry services carrying vital food and medicine to Sicily and other islands were halted after the ferry provider ran into financial trouble.
Looking ahead, EUR investors will be keeping a close eye on the situation in Italy today but also looking to the Eurozone’s finalised PMI figures.
US Dollar (USD) Gains as Coronavirus Remains in Focus
The US Dollar (USD) continued to push higher during yesterday’s session as the coronavirus crisis dampened market sentiment.
However, the US Dollar was capped through the US trading session as Donald Trump warned that the US is ‘going to go through a very tough two weeks’, with the White House predicting the pandemic could claim up to 240,000 lives in the US.
Coming up, the publication of the ISM manufacturing index will be in focus for USD investors today and may potentially weigh on the US Dollar if factory growth is shown to have slumped by more than expected last month.
Canadian Dollar (CAD) Hit by Slowdown in GDP
The Canadian Dollar (CAD) came under pressure on Tuesday as Canada’s monthly GDP figures revealed domestic growth slowed to 0.1% in February, stoking concerns of a particularly deep contraction in March as the coronavirus and oil price slump hit.
Australian Dollar (AUD) Slumps in Risk-Off Trade
The Australian Dollar (AUD) came under some heavy selling pressure late into the Asian session on Wednesday as the appeal of the ‘Aussie’ was undermined by renewed risk aversion due to the coronavirus.
New Zealand Dollar (NZD) Dented by Coronavirus Fears
The New Zealand Dollar (NZD) also fell in early trade on Wednesday, with the risk-sensitive ‘Kiwi’ shunned by skittish traders amid ongoing fears over the impact of the coronavirus on the global economy.