Pound (GBP) Makes Tentative Gains, Has the UK’s Coronavirus Outbreak Peaked?
The Pound (GBP) ticked higher again on Thursday, rising on the back of suggestions that the UK’s coronavirus outbreak may have peaked some weeks ago.
However, it wasn’t all plain sailing for Sterling, with GBP’s gains tempered by some truly dire PMI figures, which revealed a much deeper-than-forecast slump in the UK’s private sector.
With this morning’s data reporting a sharp contraction in UK retail sales in March, any further upside in the Pound looks likely to be capped.
Euro (EUR) Floored by Abysmal PMI Figures
The Euro (EUR) was laid low yesterday by the publication of some truly dire PMI figures, which revealed Eurozone economic activity contracted much faster than anticipated this month.
Adding to the pressure on the single currency was the failure of EU leaders to agree on a comprehensive fiscal package for coronavirus recovery following Thursday’s virtual summit.
Meanwhile, the Euro could be in for additional losses this morning as Germany is expected to report business sentiment deteriorated to new lows this month.
US Dollar (USD) Sinks Following Another Sharp Rise in Jobless Claims
The US Dollar (USD) was left on the back foot on Thursday as USD investors responded to another massive increase in initial jobless claims last week.
Further limiting the appeal of the safe-haven currency was a risk-on mood, with hopes many major economies could soon start lifting lockdown measures helping to improve market sentiment.
Coming up today, the publication of the latest US durable goods figures could weigh on the US Dollar as investors brace for the sharpest drop in orders in over five years.
Canadian Dollar (CAD) Extends Gains on Continued Oil Recovery
The Canadian Dollar (CAD) maintained its upward trajectory during yesterday’s trading session as WTI crude prices climbed back above $16 a barrel, boosting the oil-sensitive ‘Loonie’ amid hopes this week’s collapse was just a temporary blip.
Australian Dollar (AUD) Relinquishes Gains as Coronavirus Drug Fails First Trial
After surging during Thursday’s European session on the back of improving market sentiment, the Australian Dollar (AUD) came under some pressure in overnight trade as a potential antiviral drug for the coronavirus failed its first clinical trial.
New Zealand Dollar (NZD) Slips on Coronavirus Drug Setback
Movement in the New Zealand Dollar (NZD) largely echoed that of the Australian Dollar (AUD) overnight, with the ‘Kiwi’ giving back some of Thursday’s gains after the drug remdesivir was found unsuccessful in treating the coronavirus.