Pound (GBP) Muted on Ongoing Brexit Concerns
The Pound (GBP) was mostly directionless at the end of last week’s session as the growing risk of a no-deal Brexit capped Sterling sentiment.
Further weighing on GBP exchange rates were warnings from UK scientific advisers against easing the UK lockdown too soon, labeling the government’s plans to reopen the economy this month a ‘political decision’.
Looking ahead to this week, it’s likely Brexit will continue to act as the main catalyst of movement in the Pound as the UK and EU hold their latest round of talks.
Euro (EUR) Buoyed by German Retail Figures
The Euro (EUR) traded robustly on Friday, ticking higher as Germany’s latest retail sales figures printed stronger-than-expected in April.
Adding further support to the single currency were hopes for a major fiscal boost in the Eurozone in light of the EU’s €750bn recovery fund.
Turning to this week, the spotlight is on the European Central Bank’s (ECB) latest policy decision. Will the ECB expand its Pandemic Emergency Purchase Programme (PEPP) or sit tight because of the EU’s ambitious spending plans?
US Dollar (USD) Fluctuates as Trump Takes Aim at China
The US Dollar (USD) traded in a wide range at the end of last week as USD investors waited for President Trump’s press conference on China.
This saw Trump formally announce Hong Kong’s preferential treatment will be revoked in trade and travel in response to a new security law proposed by Beijing.
Coming up today, the focus for USD investors will be on the latest ISM manufacturing PMI, with the US Dollar likely to strengthen if US factory growth proves more robust than expected last month.
Canadian Dollar (CAD) Slips as GDP Slumps
The Canadian Dollar (CAD) trended lower on Friday, dipping in response to weaker oil prices and the publication of Canada’s latest GDP figures which revealed domestic growth contracted by 2.1% in the first quarter.
Australian Dollar (AUD) Soars to Multi-Month Highs
After fluctuating on Friday, the Australian Dollar (AUD) has kicked off this week’s session on a high, surging through the Asian trading session as investors express relief that Trump’s briefing on China did not see the President withdraw from the phase-one trade deal.
New Zealand Dollar (NZD) Buoyed by Coronavirus Vaccine Optimism
The New Zealand Dollar (NZD) also crept higher in early trade this week, with the risk-sensitive ‘Kiwi’ buoyed by hopes for a potential coronavirus vaccine.