Pound (GBP) Sinks on Coronavirus and Trade Concerns
Focusing on GBP currency news, the Pound (GBP) came under some selling pressure yesterday due to an increasingly dour outlook for the UK through the second half of 2020.
This comes amidst talk of a potential lockdown in London in the event of a coronavirus resurgence as well as concerns that souring international relations could limit the UK’s post-Brexit trade opportunities.
Sterling may be able to recoup some ground this morning however, as the UK’s latest PMI release is expected to confirm UK business activity surged to a five-year high in July.
Euro (EUR) Rangebound as USD Strengthens
The Euro (EUR) was left rangebound through most of Tuesday’s session as the single currency’s negative correlation with the US Dollar (USD) saw it lose out in the face of a USD rally.
This offset the publication of the Eurozone’s producer price index, which revealed producer prices rose 0.7% in June, beating forecasts of a more modest 0.5% expansion.
The Euro may be offered some support during today’s trading session if the Eurozone reports another healthy rise in retail sales growth.
US Dollar Currency News – USD Strengthens in Risk-Off Trade
The US Dollar (USD) struck higher again during yesterday’s European session, with uncertainty regarding the US fiscal stimulus package and concerns over the rise in global coronavirus infections bolstering the appeal of the safe-haven ‘Greenback’.
Also buoying the US Dollar on Tuesday was the publication of the latest US factory order figures, which beat expectations with a 6.2% rise in June.
Top of the agenda for today’s session will be the latest ISM non-manufacturing PMI. Another healthy expansion in the US service sector last month could help extend the US Dollar’s recovery.
Canadian Dollar (CAD) Buoyed by Positive Manufacturing PMI
The Canadian Dollar (CAD) recorded some modest gains on Tuesday after Canada’s latest manufacturing PMI revealed a surprise expansion in factory activity last month.
This helped offset a dip in oil prices, which may have otherwise limited the appeal of the commodity-linked ‘Loonie’.
Australian Dollar (AUD) Firms as RBA Makes AU$500m Bond Purchase
The Australian Dollar (AUD) ticked higher overnight on Tuesday as the Reserve Bank of Australia (RBA) carried through its pledge to provide monetary support through the purchase of AU$500m worth of Australian government bonds.
New Zealand Dollar Currency News – NZD Rallies on Upbeat Jobs Report
In terms of NZD currency news, the New Zealand Dollar also trended higher overnight, with NZD investors cheering the release of New Zealand’s latest jobs report.
The data revealed that the country’s unemployment rate actually fell from 4.2% to 4% in the second quarter, beating forecasts it would rise as high as 5.8%.