Today’s Currency News: US Dollar (USD) Exchange Rates Poised to Fall on Deep Slump in US GDP

Pound (GBP) Undermined by Gloomy Retail Data

The Pound (GBP) was on the defensive yesterday following the release of the Confederation of British Industry’s (CBI) latest distributive trends index.

The survey found that 71% of retailers reported a fall in sales this month, a collapse in spending not seen since December 2008.

GBP investors will remain focused on the UK government’s next steps and whether there is any chance of Boris Johnson’s easing the lockdown next month.

Euro (EUR) Steady as France and Spain Unveil Lockdown Exit Strategy

The Euro (EUR) held steady through Tuesday’s session as EUR investors welcomed the announcement of France and Spain’s plans to reopen parts of the economy next month.

This helped to offset concerns that the situation in Germany could be deteriorating after the infection rate in the country reportedly climbed to 1, up from 0.7 earlier in the month.

Meanwhile, the Euro could face some pressure this morning as the Eurozone’s business confidence survey is expected to report that economic sentiment slumped to a new low this month.

US Dollar (USD) Sinks amid Positive Market Mood

The US Dollar (USD) recorded broad losses during yesterday’s trading session as demand for the safe-haven currency was stifled by improving market sentiment.

This comes as investors grow increasingly optimistic at the prospect of more countries reopening their economies.

The US Dollar will face more headwinds in today’s session with the publication of the latest US GDP figures, which are expected to show domestic growth contracted by a sizable 4% in the first quarter.

Also influencing USD exchange rates will be the Federal Reserve’s latest rate decision. No policy changes are expected this month, but will the Fed’s forward guidance hint that the bank could implement additional stimulus measures in the future?

Canadian Dollar (CAD) Buoyed as Oil Rebounds From Lows

The Canadian Dollar (CAD) edged higher on Tuesday, with a modest recovery in oil prices helping to bolster the appeal of the commodity-linked ‘Loonie’.

Australian Dollar (AUD) Supported by Robust Inflation Figures

The Australian Dollar (AUD) maintained its upward trajectory overnight on Tuesday, strengthening on the back of a stronger-than-expected pick up in domestic inflation in the first quarter.

New Zealand Dollar (NZD) Strengthens in Risk-on Trade

The New Zealand Dollar (NZD) also rallied overnight, with demand for the ‘Kiwi’ surging amid the improving market mood.

Matthew Andrews

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