Pound (GBP) Sinks amidst Gloomy Market Mood
The Pound (GBP) fell sharply through yesterday’s session as the UK currency fell victim to a souring of market sentiment.
Sterling is currently extremely vulnerable to market sentiment as Brexit and the UK’s coronavirus outbreak poses major challenges for the country.
Meanwhile, this downtrend in GBP exchange rates looks to persist though today’s session after the UK reported a dramatic drop in GDP in April as economic activity ground to a halt during the country’s first full month of lockdown.
Euro (EUR) Suffers in Rush for Dollars
The Euro (EUR) struggled to find momentum on Thursday as the single currency’s negative correlation with the US Dollar (USD) saw it weaken during the rush to buy USD.
Also weighing on the Euro was the lack of news regarding the EU’s coronavirus recovery fund following the latest European summit of leaders.
Coming up this morning, the publication of the Eurozone’s latest industrial production figures look set to weigh on the Euro, amidst forecasts factory output slumped to a record low in April.
US Dollar (USD) Strengthened by Risk-Off Trade
The US Dollar (USD) struck higher against most of its peers yesterday, as a souring market mood saw investors favour the safe-haven currency.
This downbeat mood was attributed to the Federal Reserve after the US central bank’s bleak forecasts from earlier in the week eroded some of the recent optimism for a sharp V-shaped recovery in the global economy.
Looking ahead, the US Dollar may extend its upward momentum during today’s session if the Michigan consumer sentiment index shows a marked improvement in household confidence in June.
Canadian Dollar (CAD) Slumps amid Oil Sell-Off
The Canadian Dollar (CAD) fell back on Thursday, with a record high build up in US oil inventories saw crude prices tumble, limiting the appeal of the commodity-linked ‘Loonie’.
Australian Dollar (AUD) Shunned by Jittery Investors
The Australian Dollar (AUD) plunged during yesterday’s session as the Fed’s gloomy forecasts and fears of a second wave of coronavirus infections weighed heavily on the risk-sensitive ‘Aussie’.
New Zealand Dollar (NZD) Offered Reprieve from Improved PMI Figures
The New Zealand Dollar (NZD) also slumped in risk-off trade on Thursday, although the ‘Kiwi’ was able to pull itself back from its worst levels after the publication of some stronger-than-expected domestic PMI figures overnight.