Pound (GBP) Exchange Rates Run Out of Momentum
The Pound (GBP) faltered at the end of last week’s session, with Sterling’s recent rally finally appearing to have run out of steam.
This comes as the UK’s services PMI data confirmed business activity plummeted to a new record low last week and GBP investors were unnerved by a sharp rise in the coronavirus death toll.
Kicking off this week will be the publication of the UK’s construction PMI, where an expected slump in construction activity may put additional pressure on Sterling.
Euro (EUR) Offered Support by Strong Retail Sales Data
Trade in the Euro (EUR) was mixed at the end of last week’s session, with the single currency able to advance against some of its weaker peers thanks to surprisingly strong Eurozone retail sales in February.
However, with EUR investors still perturbed by the EU’s failure to agree to the issuing of joint bonds, the Euro’s upside proved limited.
Looking to the week ahead, we may see the Euro struggle as long as political infighting casts doubts over the long-term unity of the EU.
US Dollar (USD) Strengthens in spite of Miserable US Payroll Reading
The US Dollar (USD) closed last week’s session on a high, extending its recent rally in spite of a larger –than-expected increase in non-farm payrolls last month.
A payroll contraction of 700,000 was far worse than the 100,000 forecast by economists, but in the end this failed to dent the US Dollar’s appeal as concerns over the coronavirus kept the safe-haven currency firmly in demand.
The US Dollar has lost some of its momentum this morning as indications that the outbreak might be plateauing in Europe raised risk appetite.
Canadian Dollar (CAD) Surges as Oil Prices Rally
The Canadian Dollar (CAD), jumped on Friday, with the oil-linked currency being catapulted higher after WTI crude rallied above $26 a barrel on hopes of a deal between Saudi and Russia.
The two will speak at a virtual OPEC meeting being held today, expect to see the ‘Loonie’ extend its gains if a deal is formally brokered.
Australian Dollar (AUD) Jumps as Risk Appetite Improves
The Australian Dollar (AUD) surged against the Pound, Euro and US Dollar during the Australasian session, with the currency climbing by almost 1% against its major rivals. The risk-sensitive ‘Aussie’ benefited from reports that the outbreak appears to be levelling off in Europe and has, so far, not spiked in Australia.
New Zealand Dollar (NZD) Trends Higher
The New Zealand Dollar (NZD) also benefited from the increase in risk appetite, with NZD pushing higher against the Pound, Euro and US Dollar.