Pound (GBP) Slips on Brexit Worries
The Pound (GBP) slid at the start of this week’s session as renewed Brexit jitters weighed on the currency.
Further limiting the appeal of Sterling were comments from the Bank of England’s (BoE) Gertjan Vlieghe, who hinted that interest rates may have further to fall in the future.
Looking ahead, the focus for GBP investors today will be a speech from Boris Johnson in which the PM is expected to outline his plans for the UK’s post-lockdown economic recovery.
Euro (EUR) Buoyed by Upbeat Data
The Euro (EUR) ticked higher on Monday as Eurozone economic sentiment continued to improve this month as more countries eased their lockdown measures.
Also buoying the single currency was Germany’s latest consumer price index as inflation in the Eurozone largest economy accelerated faster than expected in June.
Coming up, will this morning’s Eurozone CPI figures show a similar improvement? Expect the Euro to enjoy some modest gains if the bloc avoided deflation this month.
US Dollar (USD) Lifted by Coronavirus Concerns
The US Dollar (USD) ticked higher yesterday as investors remained nervous amid a worrying rise in coronavirus cases, particularly in the US.
While investors raised concerns about how the spike in cases could impact the reopening of the US economy, it did little to quell demand for the safe-haven ‘Greenback’.
This uptrend in the US Dollar is likely to extend through today’s session as well, so long as the negative coronavirus developments persist.
Canadian Dollar (CAD) Steady as Oil Prices Rise
The Canadian Dollar (CAD) held in a narrow range on Monday, with the commodity-linked ‘Loonie’ able to avoid any losses thanks to a modest upswing in oil prices.
Australian Dollar (AUD) Buoyed by Upbeat PMIs from China
The Australian Dollar (AUD) ticked higher overnight on Monday, with the China-proxy ‘Aussie’ strengthening in the wake of China’s latest PMI figures, which printed higher than expected in June.
New Zealand Dollar (NZD) Flat as Business Confidence Falls Short of Expectations
The New Zealand Dollar (NZD) was left mostly rangebound overnight as domestic business confidence improved less than expected in June.