Pound (GBP) Exchange Rates Extend Recovery
The Pound (GBP) continued to push higher during yesterday’s session, extending its run of unbroken gains into its sixth day.
However, these gains were capped somewhat by ongoing worries over the coronavirus as it continues to spread throughout the UK at a startling pace.
Looking ahead, the Pound could struggle a little this morning if the UK services PMI is revised lower as March’s final reading also takes into the account the period after the UK imposed its lockdown.
Euro (EUR) Slumps as Coronavirus Exposes Cracks in EU Unity
The Euro (EUR) remained on the defensive on Thursday, with political infighting over the EU fiscal response to the coronavirus taking its toll on the single currency.
The coronavirus crisis appears to have laid bare the cracks in the EU as its members argue over the issuing of joint debt, with Germany and the Netherlands resisting the idea of the so-called ‘coronabond’.
Expect the Euro to continue trending lower as long as the EU is unable to adopt a united approach to mitigating the economic impact of the coronavirus.
US Dollar (USD) Strengthens Despite Unprecedented Rise in US Unemployment
The US Dollar (USD) continued to punch higher during yesterday’s session, despite an astonishing jump in American’s claiming unemployment benefits.
The US Department of Labor reported initial jobless claims jumped to a record 6.6 million last week, dwarfing the previous record of 3.2 million set the week prior as the coronavirus spread throughout the US.
However, this surge in claims failed to dent the US Dollar as it stoked concerns that the global economy is headed for a deep recession as a result of the coronavirus crisis.
Coming up, USD investors will stay focused on the US job market today, with the publication of the highly influential non-farm payroll figures expected to report the first contraction in US employment growth in almost a decade.
Canadian Dollar (CAD) Jumps on Huge Oil Rally
After an initial dip the Canadian Dollar (CAD) bounced back on Thursday after oil prices surged 25% on reports Donald Trump had brokered a deal between Russia and Saudi Arabia.
Australian Dollar (AUD) Buoyed by Strong Retail Sales
After being on the back foot through much of the week, the Australian Dollar (AUD) was able to creep higher overnight on Thursday as Australia published some stronger-than-expected retail sales figures for February.
New Zealand Dollar (NZD) Muted on Coronavirus Fears
The New Zealand Dollar (NZD) remained mostly rangebound overnight, with investors still wary of the risk sensitive ‘Kiwi’ amid ongoing concerns over the coronavirus.
Data Releases
09:00 EUR Services PMI (Mar)
09:30 GBP Services PMI (Mar)
13:30 USD Non-Farm Payrolls (Mar)
15:00 USD ISM Non-Manufacturing PMI (Mar)