Pound (GBP) Slips on Brexit Anxiety
The Pound (GBP) opened this week’s session on the back foot, with lingering Brexit uncertainty dragging on Sterling sentiment.
This comes as July’s ‘intensified’ trade talks have so far failed to bear fruit, with the risks of a no-deal Brexit appearing to grow by the day.
Meanwhile, the Pound looks to remain on the defensive, after data published earlier this morning revealed the UK GDP undershot expectations in May following a startling collapse in April.
Euro (EUR) Strengthens as Germany’s Economy on the Rebound
The Euro (EUR) struck higher through yesterday’s trading session as EUR investors welcomed a report from Germany’s government on the country’s economic outlook.
The report claims that Germany’s economy has ‘passed its lowest point’ and that a recent rise in industrial orders points to the country already being on the road to recovery.
Looking ahead, the focus for EUR investors today will be on the latest ZEW economic surveys, with the Euro potentially slipping if economic sentiment in the Eurozone weakened this month.
US Dollar (USD) Undermined by Risk-On Mood
The US Dollar (USD) remained on the back foot at the start of this week’s session, with the safe-haven currency being undermined by fresh market optimism.
This optimism was mostly driven by hopes for a coronavirus treatment. US based Gilead Sciences Inc reported that its antiviral drug, remdesivir, helped to reduce coronavirus fatalities, while the head of German biotech firm BioNTech suggested a vaccine could be approved by the end of 2020.
Coming up today, the US will publish its latest CPI figures, where a rise in US inflation last month could help buoy the US Dollar.
Canadian Dollar (CAD) Firms as Oil Climbs Back Above $40
The Canadian Dollar (CAD) ticked higher on Monday, with the appeal of the commodity-linked ‘Loonie’ being bolstered as WTI oil prices rose back above $40 a barrel.
Australian Dollar (AUD) Lifted by Upbeat Chinese Data
The Australian Dollar (AUD) trended higher overnight on Monday, with a rise in demand for the China proxy ‘Aussie’ after China’s latest trade figures reported a sharp rise in export and imports from Australia’s largest trading partner.
New Zealand Dollar (NZD) Muted on Market Jitters
The New Zealand Dollar (NZD) was left on the back foot through Tuesday’s Asian session, with demand for the risk-sensitive ‘Kiwi’ being undermined by coronavirus concerns as well as rising US-China tensions.