Pound (GBP) Rangebound as Investors Await Fresh Impetus
The Pound (GBP) was muted through yesterday’s session as a lack of notable economic data left Sterling mostly directionless.
Sterling’s lack of momentum also comes as GBP investor wait for Boris Johnson to unveil his ‘comprehensive plan’ for reopening the economy, amidst speculation this could involve the UK lockdown being extended.
Coming up this morning, the final release of the UK’s Services PMI could continue to limit any upside in the Pound as it is expected to confirm that activity in the service sector collapsed to a record low in April.
Euro (EUR) Subdued on Gloomy PMI Figures
The Euro (EUR) was also largely rangebound on Monday, with the single currency struggling to find support following the final release of April’s manufacturing PMI from the Eurozone.
This saw growth in the bloc’s factory sector revised even lower last month as the coronavirus crisis greatly limited economic activity.
Looking ahead, the focus for EUR investors today looks to be on a speech by the European Central Bank’s (ECB) Yves Mersch as they look for more insight into the bank’s potential stimulus plans.
US Dollar (USD) Strengthens as Market Sentiment Sours
The US Dollar (USD) opened this week’s session on strong footing as comments made by Donald Trump over the weekend dampened market sentiment, bolstering demand for the safe-haven ‘Greenback’.
Speaking to Fox News, Trump stepped up criticism of Beijing and its handling of the coronavirus crisis, stoking tensions between the US and China and fueling fears of a new trade war.
However, we may see the US Dollar relinquish some gains during today’s session as the ISM non-manufacturing PMI is expected to report a sharp drop in US service sector activity last month.
Canadian Dollar (CAD) Rallies on Sustained Oil Recovery
The Canadian Dollar (CAD) enjoyed a solid pick-up on Monday, with the commodity-linked ‘Loonie’ catching support as WTI oil prices climbed back above $20 a barrel.
Australian Dollar (AUD) Muted Following RBA Rate Decision
The Australian Dollar (AUD) traded in a narrow range overnight on Monday as the Reserve Bank of Australia (RBA) left its monetary policy untouched and committed to leaving interest rates at a record low until inflation and employment targets are met.
New Zealand Dollar (NZD) Muted in Risk-Off Trade
The New Zealand Dollar (NZD) also traded narrowly overnight, with trade war fears limiting demand for the risk-sensitive ‘Kiwi’.
Coming up, NZD demand could be further tempered by the publication of New Zealand’s first quarter employment report as unemployment is forecast to have jumped in the first quarter.