Today’s Currency News: GBP/USD Holds Above $1.27 but Brexit Clouds Limit Gains

Pound (GBP) Extends Rally Despite Brexit Uncertainty

The Pound (GBP) ticked higher yesterday, maintaining its upward momentum from the end of last week’s session.

However, Sterling’s gains did not go unchecked as many investors remain wary of the UK currency amidst growing fears of a no-deal Brexit.

Looking ahead, in the absence of any notable data the focus for GBP investors is likely to remain on the UK’s coronavirus statistics and how it may impact the UK government’s plan to reopen the economy.

Euro (EUR) Fluctuates as ECB Reiterates Support for Economy

The Euro (EUR) started poorly on Monday, struggling to find support through the morning after Germany reported a record fall in industrial production in April.

Fortunately for EUR investors, the single currency found some limited support later in the session after European Central Bank (ECB) President Christine Lagarde reiterated her commitment to supporting the economy through the coronavirus recovery.

Coming up, it’s likely the Euro is going to struggle again this morning as the Eurozone’s latest GDP figures are set to confirm a sharp drop in economic growth at the start of the year.

US Dollar (USD) Slips amid Improving Market Sentiment

The US Dollar (USD) opened this week on the back foot as an upbeat market mood diminished the appeal of the safe-haven currency.

However, these losses were trimmed somewhat by the easing of civil unrest in the US over the weekend, with very fell instances of violence.

Turning to today’s session, US economic data is thin on the ground, but USD investors will be keeping an eye on the protests in the US and potential tensions between the White House and Beijing.

Canadian Dollar (CAD) Firms Despite Sliding Oil Prices

The Canadian Dollar (CAD) edged higher on Monday, lifted by a broad upswing in risk sentiment which offset a 2% slide in oil prices, usually undermining the commodity-linked ‘Loonie’.

Australian Dollar (AUD) Sinks on Spat with China

The Australian Dollar (AUD) fell back overnight on Monday in the face of escalating tensions between Australia and China, with Beijing warning Chinese students against studying in Australian due to ‘racial discrimination against Asian students.’

New Zealand Dollar (NZD) Slips amid Tensions in the Region

The New Zealand Dollar (NZD) also edged lower overnight as NZD investors appeared wary about the possibility of the row between Australia and China also impacting New Zealand due to the nation’s close trade relationship with both countries.

Matthew Andrews

Contact Matthew Andrews