Pound (GBP) Jumps in Upbeat Trade
The Pound (GBP) struck higher against USD and the majority of its peers yesterday as more upbeat trade carried the currency higher. However, the Pound to Euro exchange rate stayed trading in a narrow range.
This improving market mood helped offset the UK’s current economic gloom and distract from concerns that the country is likely heading into an unemployment crisis.
In the continued absence of any notable UK economic data, the pound may struggle for direction today. Sterling could even come under pressure, depending on any coronavirus or Brexit developments.
Euro (EUR) Maintains Bullish Appeal
The Euro (EUR) maintained its upward trajectory through yesterday’s trading session as upbeat market sentiment sustained the bullish tone towards the single currency.
However, US-EU trade concerns tempered gains as the US announced it would be maintaining its 25% tariffs on a range of EU goods. This is because the White House believes the EU is not doing enough to comply with the WTO’s ruling over state aid to Airbus.
Meanwhile, the Euro may struggle to extend these gains today as forecasts for the Eurozone’s latest employment data predict a sharp downturn in employment growth through the second quarter.
US Dollar (USD) Tumbles in Risk-On Trade
The US Dollar (USD) faced some notable selling pressure during Thursday’s European trading session as a risk-on mood undermined safe-haven demand.
The latest US initial claims figures encouraged risk appetite, which weighed on US Dollar to Euro and Pound exchange rates. The initial claims data showed new jobless claims dropped below 1 million for the first time in 21 weeks, cheering investors.
Still to come this week is the publication of the latest US retail sales figures. With sales growth expected to have returned to more normal levels last month, how will this impact the US Dollar?
Canadian Dollar (CAD) Muted on Oil Demand Concerns
The Canadian Dollar (CAD) struggled to find momentum on Thursday as the appeal of the commodity-sensitive ‘Loonie’ dropped. This came after the International Energy Agency lowered its 2020 oil forecast, with crude prices stalling as demand was seen falling by 140,000 barrels a day.
Australian Dollar (AUD) Firms on Lowe Comments
The Australian Dollar (AUD) began to bounce back overnight on Thursday in the wake of comments by Reserve Bank of Australia (RBA) Governor Philip Lowe.
In a prepared statement before the Parliament’s Economic Committee, Lowe addressed the current strength of the ‘Aussie’ and suggested he would like to see it lower, but dismissed suggestions of overvaluation.
New Zealand Dollar (NZD) Undermined by Coronavirus Fears
The New Zealand Dollar (NZD) was on the defensive overnight as the re-introduction of lockdown measures in parts of New Zealand, following reports of community transmitted coronavirus cases, spooked NZD investors.