Pound (GBP) Sinks as Market Sentiment Sours
The Pound (GBP) closed last week’s session on a sour note, falling heavily in response to renewed Brexit jitters and souring risk-sentiment.
Investors are growing increasingly wary of Sterling as the ever-present risk of no-deal Brexit and growing concerns over a second wave of coronavirus threaten to significantly impact the UK economy.
Looking ahead, it is likely the Pound will face additional pressure this week as the latest round of Brexit talks get underway, with GBP investors holding out little hope for any real progress towards a deal.
Euro (EUR) Flat Following Lagarde Comments
The Euro (EUR) was mostly rangebound at the end of last week, following comments from European Central Bank (ECB) President Christine Lagarde.
At an Online Summit organised by the European Business Leaders’ Convention, Lagarde warned the Eurozone’s economic recovery ‘will be a complicated matter’ but reiterated the ECB’s commitment to supporting said recovery.
Coming up, the Euro may get off to a strong start this week, if this morning’s business confidence figures report an improvement in Eurozone economic sentiment this month.
US Dollar (USD) Bolstered by Market Jitters
The US Dollar (USD) rallied at the end of last week’s session as market concerns over a second wave of coronavirus continued to buoy the appeal of the safe-haven ‘Greenback’.
With the US reporting its largest daily increase in coronavirus cases on Friday and reports that some states are hitting pause on plans to reopen, investors are growing increasingly concerned that the rebound in global growth may not be as quick as some had hoped.
Turning to the week ahead, it is likely these coronavirus concerns are set to persist, keeping the US Dollar firmly in demand for the time being.
Canadian Dollar (CAD) Undermined by Sliding Oil Prices
The Canadian Dollar (CAD) ticked lower on Friday, with investors shunning the oil-sensitive ‘Loonie’ as crude prices closed the week lower.
Australian Dollar (AUD) Buoyed by Vaccine Hopes
The Australian Dollar (AUD) held steady through the Asian session earlier today, with hopes for a coronavirus vaccine being developed in China helping to offset concerns about a recent spike in new cases in the US.
New Zealand Dollar (NZD) Steady amidst Cautious Optimism
The New Zealand Dollar (NZD) also held in a narrow range in early trade this week as hopes for a potential coronavirus treatment cheered market sentiment.