Today’s Currency News: GBP/EUR Exchange Rate Sinks to Six-Week Low as Brexit Talks make ‘Very Little Progress’

Pound (GBP) Nosedives on No-Deal Brexit Fears

The Pound (GBP) tumbled at the end of last week’s session in response to renewed Brexit jitters.

This came as the latest round of Brexit talks concluded with the UK reporting that ‘very little progress’ had been made while the EU’s Brexit negotiator Michel Barnier said he is ‘not optimistic on chances for a deal with the UK’.

The Pound could face further losses this week as GBP investors brace for another batch of gloomy UK economic data.

Euro (EUR) Rallies Despite Gloomy German GDP Figures

The Euro (EUR) pushed higher on Friday in spite of Germany’s latest GDP figures confirming that the Eurozone’s largest economy has fallen into a recession, with its largest quarterly contraction in over a decade.

The single currency’s gains were attributed to broad weakness in the US Dollar (USD) as well as the news that the European Council agreed a €250 billion safety net to help protect EU jobs.

The Euro may build on these gains if the easing of lockdown restrictions in Europe helped bolster Eurozone economic sentiment this month.

US Dollar (USD) Plummets on Dire Data

The US Dollar (USD) closed last week’s session on the back foot, with the currency undermined by a record fall in US retail sales last month.

Further limiting the appeal of the safe-haven ‘Greenback’ were reports of positive tests of a coronavirus vaccine in six rhesus macaque monkeys.

Looking ahead, the US Dollar may be quick to mount a comeback this week if Trump stokes US-China tensions with more attacks on Beijing and its coronavirus response.

Canadian Dollar (CAD) Rallies as Oil Prices Jump

The Canadian Dollar (CAD) strengthened on Friday as the appeal of the commodity-sensitive ‘Loonie’ was bolstered by WTI oil prices climbing above $28 a barrel.

Australian Dollar (AUD) Climbs as Risk Appetite Improves

The Australian Dollar (AUD) pushed higher during the Australasian session thanks to rising risk appetite. AUD investors will now be looking ahead to the release of minutes from the Reserve Bank of Australia’s (RBA) latest policy meeting.

New Zealand Dollar (NZD) Edges Higher before Dairy Auction

The New Zealand Dollar (NZD) followed the Australian Dollar higher overnight as demand for safe-haven currencies declined. Coming up this week we have New Zealand’s latest daily auction, plus retail sales and trade data.

Matthew Andrews

Contact Matthew Andrews