Pound (GBP) Strengthens as UK ‘Passed the Peak’ of Coronavirus Outbreak
The Pound (GBP) made some tentative gains on Thursday, with Sterling rising through the European session ahead of Boris Johnson’s update on the UK coronavirus situation.
Sterling consolidated these gains as Johnson announced the UK has passed the peak of its outbreak and that he will publish a ‘comprehensive plan’ next week on how the government plans to reopen the economy.
Coming up, we will see the UK’s finalised PMI figures confirm domestic manufacturing activity struck a record low in April, likely capping any upside in GBP exchange rates.
Euro (EUR) Slides on Abysmal GDP Figures
The Euro (EUR) took a bit of a beating on Thursday as markets digested a truly dire Eurozone GDP release.
While it came as no surprise that growth in the Eurozone contracted in the first quarter of 2020 as the entire bloc went into coronavirus lockdown, it was still enough to weaken the Euro.
The single currency’s losses were helped by comments from Christine Lagarde following the European Central Bank’s (ECB) latest policy meeting. She warned Eurozone GDP could contract as much as 12% this year.
In the absence of any notable data, the gloomy outlook is likely to see the Euro remain dejected heading into the weekend.
US Dollar (USD) Tumbles on Worrying US Unemployment
The US Dollar (USD) suffered heavy losses during yesterday’s session, as USD investors digested the latest unemployment numbers.
Thursday’s data revealed another massive rise in US jobless claims, with investors growing increasingly concerned about the state of the economy after unemployment jumped by over 30 million in the past six weeks.
Looking ahead, the ‘Greenback’ may face some headwinds this afternoon, as the latest ISM manufacturing PMI is expected to report a sharp slump in US factory growth.
Canadian Dollar (CAD) Muted as GDP Stalls
The Canadian Dollar (CAD) traded in a narrow range on Thursday, with the ‘Loonie’ unable to take advantage of the continued rally in oil prices after domestic data showed Canada’s economy stalled in February.
Australian Dollar (AUD) Plunges in Risk-Off Trade
The Australian Dollar (AUD) fell sharply in overnight trade on Thursday as a souring of market sentiment greatly weakened demand for the risk-sensitive ‘Aussie’.
New Zealand Dollar (NZD) Undermined by Skittish Investors
The New Zealand Dollar (NZD) dove in overnight trade as demand for the ‘Kiwi’ was severely capped by a more downbeat market mood.