Pound (GBP) Slips on Ongoing Brexit Concerns
The Pound (GBP) was on the back foot through the majority of yesterday’s session, undermined by concerns that any chance of a Brexit trade deal between the UK and EU are looking increasingly slim.
While the UK’s latest construction PMI showed a marked improvement from April’s catastrophic figures, this ultimately failed to prop up confidence in Sterling.
Looking ahead, it’s likely the spectre of Brexit will continue to hang over GBP exchange rates through the remainder of this week’s session as the latest round of talks come to a close.
Euro (EUR) Soars as ECB to Expand Coronavirus Stimulus Programme
The Euro (EUR) came out on top on Thursday as EUR investors cheered the European Central Bank’s (ECB) decision to expand its Pandemic Emergency Purchase Programme (PEPP).
Following its latest policy meeting the ECB made the decision to top up its PEPP scheme by €600bn, slightly above the €500bn increase economists had predicted.
However, the Euro may relinquish some of these gains this morning after Germany reported its worst slump in factory orders since reunification.
US Dollar (USD) Fluctuates on US-China Tensions, Weak Data
The US Dollar (USD) got off to a solid start yesterday as demand for the safe-haven currency was buoyed in light of elevated tensions between the US and China.
However, these gains quickly faded in the latter half of the session after the US reported jobless claims rose slightly faster than expected in the final week of May.
In the spotlight today is the publication of the highly influential US payroll figures. Will the US Dollar come under pressure this afternoon amidst forecasts US unemployment will have neared 20% in May?
Canadian Dollar (CAD) Dips on Weaker Oil Prices
The Canadian Dollar (CAD) edged lower on Thursday as the oil-sensitive currency was undermined by a modest fall in crude prices.
Coming up, today’s Canadian jobs report could weigh on the ‘Loonie’ if domestic unemployment saw another notable increase in May.
Australian Dollar (AUD) Buoyed as Australia Seeks to Reopen Borders
The Australian Dollar (AUD) enjoyed a boost overnight on Thursday, with AUD investors welcoming reports that the Australian government is planning to ease border restrictions with certain countries.
New Zealand Dollar (NZD) Gains in Risk-On Trade
The New Zealand Dollar (NZD) also ticked higher overnight as a bullish market mood helped to bolster the appeal of the risk-sensitive ‘Kiwi’.