Pound (GBP) Buoyed by Brexit Hopes
The Pound (GBP) edged higher through yesterday’s trading session, being supported by lingering Brexit optimism.
However, these gains were tempered by the publication of the Confederation of British Industry’s (CBI) latest distributive trades survey, as retailers reported sales this month were at their weakest level since June.
In the absence of any notable UK data, the focus for GBP investors is likely to remain on Brexit as well as concerns over the continued rise in domestic coronavirus cases, particularly amid ongoing speculation the UK is headed towards a second lockdown.
Euro (EUR) Holds Ground despite Double-Dip Recession Fears
The Euro (EUR) was subdued on Tuesday as surging coronavirus cases across Europe and the prospect of countries imposing stricter restrictions, stoked concerns the Eurozone could be facing a contraction in the fourth quarter.
Despite the gloom, the Euro was able to avoid any losses thanks to a pullback in the US Dollar, with the negative correlation in the pairing offering support to the single currency.
Looking ahead, the Euro may remain in a holding pattern through today’s session as EUR investors brace for the European Central Bank’s (ECB) latest rate decision on Thursday.
US Dollar (USD) Slides as US Durable Goods Orders Beats Expectations
The US Dollar (USD) suffered slight losses yesterday as a modest rebound in equity markets undermined the appeal of the safe-haven currency.
Adding to the pressure on the ‘Greenback’ was the latest US durable goods orders figures, with a stronger-than-expected rise in goods orders last month further tempering any risk-off trade.
Going forward, the US Dollar will be well positioned to rally through the second half of the week as the mood looks poised to sour in the face of US political uncertainty, coronavirus jitters and stimulus doubts.
Canadian Dollar (CAD) Steady Ahead of BoC Rate Decision
The Canadian Dollar (CAD) was left mostly rangebound through Tuesday’s session, with CAD investors reluctant to place any aggressive bets ahead of today’s Bank of Canada (BoC) rate decision.
While the BoC isn’t expected to announce any changes to its monetary policy today, it could weaken the ‘Loonie’ if coronavirus concerns result in a dovish outlook from policymakers.
Australian Dollar (AUD) Strengthened by Upbeat Inflation
The Australian Dollar (AUD) ticked higher overnight on Tuesday in response to some above forecast CPI figures, which revealed domestic inflation rebounded to 0.7% in the third quarter.
New Zealand Dollar (NZD) Defies Risk-Off Mood
The New Zealand Dollar (NZD) ticked higher in overnight trade, with New Zealand’s success in containing the coronavirus pandemic allowing the ‘Kiwi’ to defy the risk-off tone which otherwise swept across markets.