Pound (GBP) Slides as UK Considers New Coronavirus Restrictions
The Pound (GBP) was stuck in a narrow range at the end of last week’s session, before Pound to US Dollar and Euro exchange rates fell this morning.
Pound exchange rates have come under pressure as reports that the UK government is considering imposing new nationwide restrictions weighs on Sterling sentiment.
The potential measures could see certain businesses forced to shut their doors again for a few weeks, concerns of which offset Friday’s stronger-than-expected retail sales print.
Consequently, souring market sentiment this morning is sending GBP exchange rates tumbling, with the Pound to US Dollar and Euro exchange rates suffering losses.
Looking ahead, the resumption of Brexit trade talks could infuse fresh volatility into the Pound this week, particularly as the UK government looks to push ahead with its Internal Market Bill.
Euro (EUR) Sidelined by Europe’s Coronavirus Crisis, Pound to Euro Weakens
The Euro (EUR) was muted on Friday as EUR investors grew increasingly concerned by the rapid rise of coronavirus crisis throughout the Eurozone.
While most governments are reluctant to broach the topic of a second lockdown, it’s becoming increasingly clear that many countries may have to impose stricter restrictions if they are to contain a second wave.
The EUR/GBP exchange rate is strengthening this morning, however, as a loss of risk appetite weighs on the Pound to Euro exchange rate.
Turning to this week’s session, the focus for EUR investors will be on the Eurozone’s latest PMI releases as they look for more evidence that the bloc’s economic recovery may be stalling.
US Dollar (USD) Buoyed against Pound and Euro in Risk-off Trade
The US Dollar (USD) struck higher at the end of last week’s session as growing concerns over the coronavirus resurgence in Europe saw investors favour the safe-haven ‘Greenback’.
Additionally, the larger-than-expected improvement in the University of Michigan’s US consumer sentiment index this month further bolstered USD exchange rates.
The souring market sentiment this morning is pushing USD higher against the Pound and Euro as Covid-19 lockdown fears hit markets, boosting the safe-haven US Dollar.
Meanwhile, USD investors will be hoping that this week could finally see Congress make some progress towards the next round of coronavirus stimulus as the failure to do so could dent the US Dollar.
Canadian Dollar (CAD) Slips as Retail Sales Undershoot Expectations
The Canadian Dollar (CAD) was on the back foot on Friday, with the oil-sensitive ‘Loonie’ unable to benefit from an uptick in oil prices, in the wake of Canada’s slightly weaker-than-expected retail sales release.
Australian Dollar (AUD) Buoyed by PM Morrison Comments
The Australian Dollar (AUD) ticked higher in early trade this week, with upbeat comments from Australian Prime Minister Scott Morrison regarding the situation in the state of Victoria helping to cheer AUD bulls.
New Zealand Dollar (NZD) Steady Ahead of RBNZ
The New Zealand Dollar (NZD) opens this week in a narrow range, with NZD investors reluctant to make any aggressive bets on the ‘Kiwi’ in the run up to this week Reserve Bank of New Zealand (RBNZ) rate decision.