Pound (GBP) Supported by Brexit Hopes
The Pound (GBP) held its ground on Thursday, buoyed by Brexit optimism in the wake of reports the EU is willing to compromise in trade talks.
The Financial Times reported the EU’s chief Brexit negotiator is willing to budge on its demand for a ‘level-playing field’ so long as it does not jeopardise the values of the single market.
Looking ahead, the focus for GBP investors is likely to remain on Brexit through the remainder of the session as the UK prepares for ‘intensified’ trade talks starting next week.
Euro (EUR) Slumps on USD Strength
The Euro (EUR) trended lower through yesterday’s session as its negative correlation with the US Dollar (USD) impacted the single currency.
However, the Euro was able to temper its losses in light of comments from the European Central Bank’s (ECB) Klass Knot who suggested ‘there’s now a glimmer of the beginning of a recovery’ in the Eurozone.
Meanwhile, EUR investors will be on the lookout for a speech by ECB President Christine Lagarde for fresh impetus today.
US Dollar (USD) Rallies amid Coronavirus Jitters
The US Dollar (USD) continued to strike higher on Thursday as the recent spike in US coronavirus cases continued to bolster the appeal of the safe-haven currency.
Further strengthening the appeal of the ‘Greenback’ was the latest US economic data, which revealed durable goods orders rebound even stronger than expected last month.
Coming up, we may see any further upside in the US Dollar limited today as the latest PCE price index is expected to report the US economy continued to suffer from deflation in May.
Canadian Dollar (CAD) Muted as Oil Prices Stall
The Canadian Dollar (CAD) was mostly rangebound through yesterday’s session, with the commodity linked currency struggling to find direction as oil prices stalled at $37 a barrel.
Australian Dollar (AUD) Buoyed Despite Worrying Global Outlook
The Australian Dollar (AUD) found some modest support overnight on Thursday, with markets appearing to shrug off concerns over rising US coronavirus statistics and the threat of a transatlantic trade war to send the risk-sensitive ‘Aussie’ higher.
New Zealand Dollar (NZD) Strengthened by Upbeat Consumer Confidence
The New Zealand Dollar (NZD) tracked higher in overnight trade, with the ‘Kiwi’ finding support on the back of some surprisingly upbeat domestic consumer confidence figures.