Pound (GBP) Flat with Brexit in Focus
The Pound (GBP) was mostly rangebound on Monday as Boris Johnson spoke with EU Commission President Ursula von der Leyen about Brexit.
Speaking after the virtual meeting, Johnson said there is a ‘very good’ chance of a trade deal by December, but admitted that new momentum in talks is needed to reach this goal.
Meanwhile, the Pound faces some potential volatility in today’s session following some mixed employment figures.
Euro (EUR) Muted on Disappointing Trade Figures
The Euro (EUR) struggled to find any momentum through yesterday’s trading session following the publication of far weaker-than-expected Eurozone trade figures.
The Eurozone posted a trade surplus of just €2.9bn in April, plunging from €28.2bn in March after the coronavirus crisis severely impacted global trade.
Looking ahead, the Euro may edge higher as long as the latest ZEW surveys show that economic sentiment in the Eurozone continued improving last month.
US Dollar (USD) Fails to Sustain Gains
The US Dollar (USD) initially surged on Monday, with fears over a coronavirus resurgence driving investors toward the safe-haven currency.
However the ‘Greenback’ was unable to hold on to these gains, ultimately closing the European session lower as it was undermined by a modest improvement in risk appetite and a bout of profit taking.
Coming up, we may see the US Dollar attempt another rally later this afternoon if US retail sales rebound in line with expectations, although these gains may also be tempered depending on the tone struck by Federal Reserve Chair Jerome Powell in his latest testimony in front of Congress.
Canadian Dollar (CAD) Retreats as Oil Prices Slide
The Canadian Dollar (CAD) stumbled out of the gate this week, with the oil-sensitive ‘Loonie’ weakening after WTI crude prices slumped 4% to below $35 a barrel.
Australian Dollar (AUD) Stumbles Following RBA Minutes
The Australian Dollar (AUD) found itself on the back foot overnight on Monday as the minutes from the Reserve’s Bank of Australia’s (RBA) most recent policy meeting highlighted the economic risks posed by the coronavirus crisis.
New Zealand Dollar (NZD) Slips as Coronavirus Returns
The New Zealand Dollar (NZD) also ticked lower overnight, with the news that New Zealand had confirmed two new cases of coronavirus (the country’s first in 24 days) weighing on the ‘Kiwi’.