Today’s Currency News: Pound Shrugs Off Brexit Concerns amidst Improving Market Sentiment

Pound (GBP) Firms amidst Upbeat Market Sentiment

The Pound (GBP) remained buoyed through Thursday’s trading session as continued market optimism kept the increasingly risk-sensitive Sterling well supported.

This also allowed GBP exchange rates to avoid any losses in light of the latest Brexit developments, with the UK’s chief Brexit negotiator David Frost telling the media the latest round of negotiations ‘underlined the significant differences’ between the UK and EU.

Coming up this morning is the UK’s latest services PMI.  June’s final release will show a better account of the period following the reopening of non-essential shops on 15 June, which could see the PMI revised higher and see the Pound close the week on a high.

Euro (EUR) Stable as Unemployment Beats Expectations

The Euro (EUR) traded in a narrow range through most of yesterday’s session, in the wake of the Eurozone’s stronger-than-expected employment figures.

Eurostat reported unemployment across the Eurozone rose from 7.3% to 7.4% in May, beating forecasts the coronavirus crisis would have propelled the jobless rate to 7.7%.

Turning to today’s session, EUR investors will be focused on the Eurozone’s own services PMI. Will June’s final reading be revised higher, similar to the manufacturing PMI?

US Dollar (USD) Dips on Stronger-than-Expected Payrolls Figures

Investors remained bearish towards the US Dollar (USD) on Thursday as the publication of stronger-than-expected US payroll figures helped to bolster market sentiment and limit the appeal of the safe-haven ‘Greenback’.

The bumper jobs reading also failed to lift USD exchange rates amid concerns June’s figures are already out of date, given the flare ups in coronavirus cases over the past week which has seen some states re-instate lockdown measures.

Looking ahead, the US Dollar may remain vulnerable to additional losses today, amid thin trading in USD due to the closure of US markets for the 4 July weekend.

Canadian Dollar (CAD) Struggles Despite Positive Data, Oil Prices

The Canadian Dollar (CAD) found itself trailing against most of its peers yesterday, with the ‘Loonie’ failing to capitalise on stronger-than-expected domestic trade figures as well as a bump in oil prices.

Australian Dollar (AUD) Bolstered by Strong Retail sales

The Australian Dollar (AUD) ticked higher overnight on Thursday as AUD investors welcomed retail sales figures showing that domestic sales growth rocketed by 16.9% in May.

Further buoying the ‘Aussie’ was China’s latest PMI figures as Australia’s largest trading partner reported its largest expansion of its service sector in over a decade last month.

New Zealand Dollar (NZD) Buoyed by Risk-On Trade

The New Zealand Dollar (NZD) also trended higher overnight, with the risk-sensitive ‘Kiwi’ finding support from the recent upbeat data from the US and China.

Matthew Andrews

Contact Matthew Andrews