Pound (GBP) Sidelined by Brexit Worries
The Pound (GBP) was rangebound at the end of last week’s session, with Sterling’s recent run of gains coming to a halt in response to renewed Brexit jitters.
This follows warnings from the EU on Thursday that there are still ‘significant differences’ between the two sides, indicating little progress in the first half of July’s ‘intensified’ trade talks.
However, Sterling could resume its rally at the start of this week if we see May’s UK GDP print higher-than-expected on Tuesday.
Euro (EUR) Muted on EU Fund Doubts
The Euro (EUR) was mostly subdued on Friday amidst growing doubts that EU leaders will be able to reach an agreement in regard to the EU’s coronavirus recovery fund.
EU leaders are set to meet later this week for a summit in which the fund will be the main agenda, but observers remain unconvinced that the ‘frugal four’ will be willing to back the recovery package in its current form.
In the meantime, the focus for EUR investors at the start of the week looks to be the latest ZEW economic surveys. Will an improvement in Eurozone economic sentiment this month help to bolster the Euro?
US Dollar (USD) Reverses Gains on Weak PPI Figures
The US Dollar (USD) initially opened Friday’s session on strong footing, with demand for the safe-haven currency being buoyed by coronavirus concerns and comments from presumptive Democratic nominee Joe Biden calling for the end of the era of ‘shareholder capitalism’.
But the ‘Greenback’ ultimately struggled at the end of the session after the US reported a surprise contraction in producer prices in June.
Looking to the week ahead, with coronavirus cases still on the rise in the US and other countries we may see some market jitters help to bolster the appeal of the US Dollar.
Canadian Dollar (CAD) Flat Despite Strong Employment Figures
The Canadian Dollar (CAD) held in a narrow range through the end of last week’s session as Canada’s stronger-than-expected employment figures were offset by a drop in oil prices.
Australian Dollar (AUD) Buoyed in Early Risk-On Trade
After dipping on Friday, the Australian Dollar (AUD) opened this week’s session on stronger footing as an improved market mood helped boost the appeal of the risk-sensitive ‘Aussie’.
New Zealand Dollar (NZD) Muted amidst RBNZ Rate Speculation
The New Zealand Dollar (NZD) struggled to capitalise on the upbeat market mood at the start of this week’s session as the appeal of the ‘Kiwi’ was dented by speculation the Reserve Bank of New Zealand (RBNZ) could cut interest rates again next month.