Pound (GBP) Stalls amid Brexit Concerns
The Pound (GBP) was mostly flat at the end of last week’s session, with a quiet day of trade leaving the focus on Brexit.
GBP investors continued to express their concern over a lack of progress towards a deal after the UK and EU spoke of ‘serious differences’ earlier in the week.
Kicking off this week’s session we have the publication of the UK’s latest construction PMI, with an improvement in construction activity last month potentially helping the Pound to open the week on stable footing.
Euro (EUR) Flat Despite Stronger Services PMI
The Euro (EUR) traded in a narrow range on Friday, with the single currency lacking any strong directional bias amidst thin trade at the end of the week.
This came in spite of the Eurozone’s final PMI reading for June being revised slightly higher, but ultimately not enough to result in the private sector avoiding contraction
Meanwhile, the Euro looks to be off to a solid start this week as German factory orders rebounded from a record low in May. The Euro may maintain this momentum if Eurozone retail sales also impress today.
US Dollar (USD) Supported by Coronavirus Concerns
The US Dollar (USD) firmed at the end of last week’s session as the rapid spread of coronavirus cases in the US shocked investors and prompted them to favour the safe-haven currency.
However, thin trade in the US Dollar due to the closure of US markets for the 4 July weekend prevented the ‘Greenback’ from really capitalising on these concerns.
Coming up today, the spotlight will be on the latest ISM non-manufacturing PMI. Will a rise in activity in the US service sector help to bolster the US Dollar, or will the data be seen as out of date given the recent lockdown measures reintroduced in a number of US states?
Canadian Dollar (CAD) Steady as Oil Holds above $40
The Canadian Dollar (CAD) traded in a narrow range on Friday, with the oil-sensitive currency in a consolidation phase as WTI crude prices held above $40 a barrel.
Australian Dollar (AUD) Climbs in Early Trade
After holding steady on Friday, the Australian Dollar (AUD) struck higher at the start of this week amidst a more optimistic market outlook.
Coming up, AUD investors will be focused on the Reserve Bank of Australia’s (RBA) rate decision later tonight as they look for any hints as to the bank’s plans for future stimulus measures.
New Zealand Dollar (NZD) Buoyed in Risk-On Trade
The New Zealand Dollar (NZD) also struck higher during Monday’s Asian session, with risk sentiment showing improvement despite growing coronavirus jitters.