Currency News Today: Pound US Dollar Holds as Double-Dip Recession Fears Rise

Pound US Dollar Holds, GBP/EUR Gains on Brexit Deal Optimism

Despite concerns over UK coronavirus statistics, the Pound US Dollar exchange rate continued holding above key resistance levels at the start of the week.

GBP exchange rates were able to mostly hold ground through yesterday’s trading session on the back of Brexit optimism, with GBP/EUR strengthening.

This appeared to be triggered by the news that the EU’s chief Brexit negotiator, Michel Barnier, had extended his stay in London, a development which many GBP investors interpreted as a positive sign of productive talks.

Looking ahead, it seems safe to assume Brexit will continue to dominate Sterling sentiment as the week continues, with the Pound poised to rally on any more positive developments.

 

Euro (EUR) Slips as Germany at Risk of Losing Control of Coronavirus Outbreak

The Euro (EUR) was on the defensive on Monday as growing concern over Europe’s spread of the coronavirus weighed heavily on EUR sentiment.

EUR investors appeared particularly spooked as German Chancellor Angela Merkel warned Europe’s largest economy is ‘on the verge of losing control of the virus’, with reports tough restrictions will be imposed on Germany later in the week.

In the absence of any notable EUR economic data, it’s likely movement in the Euro will continue to be dominated by coronavirus concerns today as well, potentially leaving the single currency vulnerable to additional losses.

 

US Dollar (USD) Jumps amid Deterioration in Market Sentiment

The US Dollar (USD) opened this week’s session on the front foot, with demand for the safe-haven ‘Greenback’ surging in response to souring market sentiment.

This gloomy market mood came courtesy of growing concern over the rise in global coronavirus cases as well as fresh doubts that a US stimulus agreement will be reached before next month’s election.

Coming up today, the focus for USD investors will be on the latest US durable goods figures. Will subdued order growth in September further dampen risk appetite and benefit the US Dollar?

 

Canadian Dollar (CAD) Retreats as Oil Prices Tumble

The Canadian Dollar (CAD) fell back on Monday as a sharp drop in oil prices as a result of demand concerns during the second wave of coronavirus undermined the appeal of the commodity-linked ‘Loonie’.

 

Australian Dollar (AUD) Subdued amid Souring Market Mood

The Australian Dollar (AUD) was left mostly rangebound overnight on Monday, with the ‘Aussie’ struggling for support amidst risk-off trade.

Meanwhile, Australia will publish its latest CPI report later tonight. While inflation is expected to have rebounded in the second quarter, any upside potential in AUD exchange rates may prove limited ahead of an expected rate cut from the Reserve Bank of Australia (RBA) next week.

 

New Zealand Dollar (NZD) Buoyed Despite Risk-Off Trade

The New Zealand Dollar (NZD) edged higher in overnight trade, with the ‘Kiwi’ appearing unfazed by the weakening of market sentiment as the currency continues to benefit from some post-election positivity.

Matthew Andrews

Contact Matthew Andrews


Related