Pound (GBP) Wobbles Despite Bumper Construction PMI
Trade in the Pound (GBP) was mixed yesterday, with the lack of any strong directional bias in Sterling leaving it vulnerable to the strength of its peers.
This comes despite some impressive domestic data as the UK’s latest construction PMI revealed the construction sector roared back into life last month with the index’s strongest reading in two years.
Looking ahead, any movement in GBP exchange rates is likely to remain limited through today’s session as markets await the publication of the UK’s supplementary budget on Wednesday.
Euro (EUR) Exchange Rates Rally on Upbeat Data
Euro (EUR) exchange rates struck higher against the majority of its peers on Monday, in response to some upbeat Eurozone economic releases.
The single currency strengthened as Germany reported a strong rebound in factory orders in May, while Eurozone retail sales also printed higher-than-expected over the same period.
The Euro looks to maintain its upward momentum through today’s session as well, after data published earlier this morning showed a sharp rebound in German industrial production.
US Dollar (USD) Undermined by Risk-On Trade
The US Dollar (USD) opened this week’s session on the back foot as bullish market sentiment undermined demand for the safe-haven ‘Greenback’.
Not even a sharp rebound in the latest ISM non-manufacturing PMI was able to shake this bearish bias in the US Dollar, despite June’s figures returning to pre-coronavirus levels.
However, we may see the US Dollar begin to reverse some of these losses through today’s session, if we see coronavirus concerns begin to chip away at the recent market optimism.
Canadian Dollar (CAD) Slips on Oil Demand Concerns
The Canadian Dollar (CAD) trended lower on Monday as the appeal of the oil-sensitive currency was undermined by growing fears that demand for the commodity could be hit again in the second half of 2020 if a second wave of coronavirus infections emerge.
Australian Dollar (AUD) Weakened by Cautious RBA
The Australian Dollar (AUD) edged lower overnight on Monday, in response to the Reserve Bank of Australia’s (RBA) latest rate decision.
While the RBA kept monetary policy untouched this month, a cautious outlook from the bank dragged on the ‘Aussie’.
New Zealand Dollar (NZD) Slips as Risk Sentiment Dips
The New Zealand Dollar (NZD) also weakened in overnight trade, with rising coronavirus cases and renewed US-China tensions denting market risk-appetite.