Pound (GBP) Rallies as UK Prepares to Reopen
The Pound (GBP) punched higher during yesterday’s session, rallying on hopes that the UK economy could lurch back into life next month with the reopening of non-essential shops.
Further buoying Sterling sentiment were hopes for a Brexit breakthrough amidst unconfirmed reports the EU is ready to make a concession regarding fishing rights.
Looking ahead, GBP investors are likely to remain focused on the UK’s coronavirus situation as the UK government’s plan to reopen the economy is dependent on new cases continuing to fall.
Euro (EUR) Slips Against Stronger Peers
The Euro (EUR) struggled to find momentum on Tuesday and was on the back foot amidst notable upswings in the majority of its peers.
This downturn in the single currency also came as Germany’s latest consumer confidence survey reported the outlook from households remained downbeat in June.
Coming up, the spotlight today looks to be on a speech by European Central Bank (ECB) President Christine Lagarde. Could Lagarde offer any insights into the bank’s monetary policy?
US Dollar (USD) Dented by Coronavirus Optimism
The US Dollar (USD) entered freefall during yesterday’s session as demand for the safe-haven ‘Greenback’ was clipped by news that a US biotechnology firm had begun human trials for a coronavirus vaccine.
This overshadowed growing tensions between the US and China as the pair clash over Beijing’s plans to impose a new national security law on Hong Kong.
Should tensions continue to escalate it’s likely we could see the US Dollar reverse some of these losses mid-week.
Canadian Dollar (CAD) Underpinned by Rising Oil Prices
The Canadian Dollar (CAD) ticked higher on Tuesday as the continued rise in oil prices helped to bolster the appeal of the commodity-linked ‘Loonie’.
Australian Dollar (AUD) Soars on Upbeat Mood
The Australian Dollar (AUD) rocketed to a new multi-month high during yesterday’s session as a bout of USD selling and improving market sentiment benefited the risk-sensitive ‘Aussie’.
New Zealand Dollar (NZD) Jumps in Risk-On Trade
The New Zealand Dollar (NZD) also roared higher on Tuesday as optimism over a potential coronavirus vaccine bolstered market confidence and the appeal of riskier currencies such as the ‘Kiwi’.