Pound (GBP) Retreats from Three-Week High
The Pound (GBP) trended higher through much of yesterday’s session, with the UK currency initially maintaining its bullish tone thanks to Rishi Sunak’s recent stimulus announcement.
However, Sterling sentiment soured later in the afternoon after EU chief negotiator Michel Barnier published a document warning British companies to expect new barriers when selling their products in the EU.
Looking ahead, the Pound may remain on the back foot through the end of this week’s session given renewed concerns over Brexit.
Euro (EUR) Muted as German Exports Miss Expectations
The Euro (EUR) was stuck trading in a narrow range through Thursday, in response to Germany’s latest trade figures.
While EUR investors were pleased to see Germany’s trade balance widen in May, the rebound in both imports and exports undershot market expectations.
In the absence of any notable economic data we may see the Euro struggle to find direction through today’s session, potentially leaving the single currency adrift through the remainder of the session.
US Dollar (USD) Buoyed by US-China Tensions
After a heavy sell-off on Wednesday, the US Dollar (USD) found some support yesterday after the White House’s announcement it would be barring companies using Chinese tech products from government contracts.
On top of stoking tensions with China, a smaller-than-expected rise in US initial jobless claims last week also helped to bolster the appeal of the US Dollar.
Coming up, will we see the US Dollar mount a comeback today? As rising coronavirus cases and fresh US-China tensions look set to drive investors towards safe-haven assets.
Canadian Dollar (CAD) Muted Amidst Dip in Oil Prices
The Canadian Dollar (CAD) was left rangebound on Thursday, with demand for the commodity-linked ‘Loonie’ undermined by a modest pullback in oil prices.
However, we may see CAD exchange rates find some upward momentum through today’s trading session if Canada’s latest job report shows a sharp upswing in employment growth last month.
Australian Dollar (AUD) Slips in Risk-Off Trade
The Australian Dollar (AUD) fell back overnight on Thursday, with coronavirus concerns and US-China tensions prompting investors to shun the risk-sensitive ‘Aussie’.
New Zealand Dollar (NZD) Undermined by Market Jitters
The New Zealand Dollar (NZD) also trended lower in overnight trade as the ‘Kiwi’ fell victim to fresh risk aversion.