Today’s Currency News: GBP/USD Surges as Market Mood Buoyed by Reopening Hopes

Pound (GBP) Buoyed by Reopening Hopes

The Pound (GBP) found some solid footing yesterday as Sterling sentiment was buoyed by hopes more of the UK economy could soon be opening.

Reports suggest Boris Johnson will announce later today whether the hospitality sector can reopen on 4 July, and whether there will be any relaxing of the 2m distancing rule.

In the meantime, the publication of the UK’s latest PMI figures are set to be in focus this morning.

Will June’s preliminary figures show activity in the UK’s private sector showed a marked improvement as lockdown measures continued to be eased?

Euro (EUR) Mixed as EU Leaders Fail to Reach Agreement on Coronavirus Fund

Trade in the Euro (EUR) was mixed on Monday, with upside in the single currency capped in the wake of last week’s EU summit in which EU leaders were unable to reach an agreement on the EU coronavirus recovery fund.

However, the Euro was offered limited support later in the afternoon after the latest Eurozone consumer sentiment index saw a modest improvement in June.

The publication of the Eurozone’s own PMI release will also be in the spotlight this morning, with a notable improvement in economic activity likely to lend some support to the Euro.

US Dollar (USD) Undermined by Upbeat Mood

The US Dollar (USD) opened this week’s session on the back foot, with the safe-haven currency falling out of favour amidst an improving market mood.

Further dragging on USD exchange rates yesterday was the latest domestic housing figures which revealed existing home sales fell sharper-than-expected last month.

Looking ahead, we may see the US Dollar met by some volatility as flash US PMI figures are expected to report a modest improvement in private sector activity this month.

Canadian Dollar (CAD) Subdued as Oil Slips Back Below $40

The Canadian Dollar (CAD) was on the defensive on Monday, with the oil-sensitive currency shunned by investors as WTI crude fell back below $40 a barrel.

Australian Dollar (AUD) Steady Following US-China Trade Scare

The Australian Dollar (AUD) was mostly rangebound through Tuesday’s Asian trade session, barring one notable blip after some comments from White House trade advisor, Peter Navarro.

Navarro appeared to suggest the US trade agreement with China had been terminated, before quickly walking back the comments.

New Zealand Dollar (NZD) Mixed amidst Fresh Coronavirus Concerns

The New Zealand Dollar (NZD) fluctuated overnight on Monday, with the risk-sensitive currency struggling to consolidate any gains amidst worries of a coronavirus resurgence in Asia.

Matthew Andrews

Contact Matthew Andrews