As the week comes to an end we bring you the latest currency news and forecasts. Which currencies are ending the week on a high? And is there further movement on the horizon?
Pound (GBP) Rallies on Improved BoE Forecasts
The Pound (GBP) struck higher yesterday on the back of the Bank of England’s (BoE) revised economic forecasts.
The BoE now sees the UK economy shrinking 9.5% in 2020, up from previous expectations for a 14% contraction. The central bank also forecast unemployment will peak at 7.5% rather than close to 10%.
The upswing in Sterling found further support from the UK’s construction PMI as it printed at its highest levels since October 2015 last month.
In the absence of any notable economic releases we may see the Pound falter at the end of this week, especially if Brexit uncertainties return.
Euro (EUR) Slips Despite Record Surge in German Factory Orders
The Euro (EUR) fell back on Thursday as a dramatic jump in German factory orders failed to inspire confidence in the single currency.
While order growth rocketed from 10.4% to a startling 27.9% in June, analysts raised concerns over how long the recovery can be sustained in light of numerous structural issues.
German industrial production figures also printed positively this morning, but will this be enough to revive the Euro’s fortunes?
US Dollar Currency News and Forecasts – USD Steady, US Stimulus in Focus
The US Dollar (USD) was trading in a narrow range on Thursday as talks continued between US lawmakers in an effort to reach an agreement on the next round of coronavirus stimulus.
Both Republican and Democrat leaders expressed their desire to strike a deal yesterday, but talks ultimately fell apart.
Looking ahead, all eyes will be on July’s non-farm payrolls release later today.
Following on from a large miss in Wednesday’s ADP employment figures, USD investors are bracing for similar disappointment today. Expect to see the USD selloff resume this afternoon if payrolls print below expectations.
Canadian Dollar (CAD) Subdued as Oil Prices Slip
The Canadian Dollar (CAD) was left on the defensive yesterday as the appeal of the oil-linked ‘Loonie’ was dented as WTI crude gave back much of Wednesday’s gains.
Australian Dollar (AUD) Slips on Weak Chinese Imports, Dovish RBA
The Australian Dollar (AUD) trended lower overnight on Thursday, initially retreating in response to a dovish outlook from the Reserve Bank of Australia (RBA) in its August statement on monetary policy.
Piling more pressure on the ‘Aussie’ was the publication of China’s latest trade figures as Australia’s largest trading partner reported a contraction in imports last month.
New Zealand Dollar (NZD) Slips on US-China Tensions
The New Zealand Dollar (NZD) also stumbled in overnight trade, with the appeal of the risk-sensitive ‘Kiwi’ dented by renewed US-China tensions after the President signed an executive order targeting two wildly popular Chinese apps.