Pound (GBP) Fluctuates on Coronavirus Concerns
Trade in the Pound (GBP) was mixed yesterday as concerns over the UK’s coronavirus outbreak took their toll on the currency.
GBP investors appeared most worried about an apparent underreporting of coronavirus cases as well as well as a lack of clear leadership as Boris Johnson continues to recuperate from his time in intensive care.
This is particularly concerning given the government’s need to announce its decision about extending the lockdown today.
Euro (EUR) Buoyed by Europe’s Cautious Steps out of Lockdown
The Euro (EUR) was broadly stronger on Wednesday as the single currency was supported by positive coronavirus developments in the Eurozone.
EUR investors are hoping the reopening of non-essential shops in Italy, Spain and Austria may be a sign that Europe is slowly coming back to life after over a month of next to no economic activity.
Looking ahead, the Eurozone’s latest industrial production figures could take the spring out of the Euro’s step this morning.
US Dollar (USD) Mounts Comeback as Market Mood Sours
The US Dollar (USD) was back on the front foot yesterday, tearing higher as market sentiment tumbled in response to the IMF’s warning that the coronavirus crisis could lead to the worst economic downturn since the Great Depression.
This rebound in USD comes in spite of the US reporting a record fall in retail sales in March as the US lockdown significantly curbed spending.
Coming up the publication of the latest initial jobless claim figures will be watched closely by USD investors as they brace for what will more than likely be another gargantuan rise in US unemployment.
Canadian Dollar (CAD) Weakens as Oil Strikes 18-Year Low
The Canadian Dollar (CAD) trended lower on Wednesday, with the oil-linked currency taking a hit as WTI crude prices fell to a new 18-year low following a warning that global demand is set to fall to its worst levels since 1995.
Australian Dollar (AUD) Tumbles despite Upbeat Employment Figures
The Australian Dollar (AUD) trended lower overnight on Wednesday as a souring market mood saw demand for the ‘Aussie’ slump in spite of Australia’s latest jobs data printing far stronger than expected.
New Zealand Dollar (NZD) Slides amid Risk-Off Mood
The New Zealand Dollar (NZD) also plunged overnight, with investors shunning the risk-sensitive currency in response to deteriorating market sentiment.