Pound (GBP) Muted in Spite of Positive Developments
The Pound (GBP) was placed on the back foot yesterday, despite GBP investors appearing to welcome Boris Johnson’s announcement that lockdown measures will be relaxed and more businesses able to reopen from 4 July.
Even positive preliminary PMI figures, revealing that the UK manufacturing sector returned to growth this month, failed to inspire much demand for Sterling.
Coming up, we may be given more details on the government’s plans to reopen the economy today, with the GBP exchange rate potentially strengthening if business leaders are confident they can operate within the new restrictions.
Euro (EUR) Surges on Upbeat PMIs
The Euro (EUR) trended higher on Tuesday as EUR investors cheered the publication of the Eurozone’s latest PMI figures.
Growth in both the manufacturing and services sector was shown to have beaten expectations this month, with the indexes nearing expansion territory and bolstering hopes for a rebound in the Eurozone economy in the third quarter.
US Dollar (USD) Slumps on US-China Trade Relief
The US Dollar (USD) was met by some intense selling pressure through yesterday’s trading session, after markets expressed relief that the US-China trade deal signed in January has not been scrapped.
This came after White House trade advisor Peter Navarro was forced to backtrack comments which were apparently misconstrued to suggest the trade deal was ‘over’.
Meanwhile, the US Dollar is likely to face additional pressure through today’s session so long as market optimism continues to improve.
Canadian Dollar (CAD) Buoyed by Uptick in Oil Prices
Trade in the Canadian Dollar (CAD) was robust through yesterday’s session, with the commodity-linked currency finding support as WTI oil prices ticked up above $41 a barrel.
Australian Dollar (AUD) Rangebound amidst Coronavirus Concerns
The Australian Dollar (AUD) traded in a narrow range overnight on Tuesday, with investors unwilling to make any bullish bets on the risk-sensitive ‘Aussie’ amidst concerns over a resurgence in coronavirus cases.
New Zealand Dollar (NZD) Slumps on Dovish RBNZ
The New Zealand Dollar (NZD) retreated overnight in response to some dovish comments from the Reserve Bank of New Zealand’s (RBNZ) following its latest policy meeting.
While the RBNZ kept interest rates and its quantitative easing programme unchanged this month, the bank’s commitment to providing additional stimulus as well as concerns over the strength of the New Zealand Dollar sent the ‘Kiwi’ lower.