Pound (GBP) Pressured by Lockdown Fears
The Pound (GBP) edged lower yesterday, with growing speculation that Boris Johnson may impose a second national lockdown weighing on Sterling sentiment.
Moreover, the ongoing silence from the UK and EU regarding the status of Brexit talks did little to cushion the Pound from increasingly jittery trade.
Looking ahead, with coronavirus and Brexit uncertainty set to remain in the spotlight for GBP investors, any upside potential in Sterling ahead of the weekend looks highly limited.
Euro (EUR) Slumps Following Dire Warnings from the ECB
EUR exchange rates retreated on Thursday, with the Euro to US Dollar falling for the fourth consecutive session.
The Euro fell in response to the markedly dovish tone struck by the European Central Bank (ECB) in its latest policy meeting.
While the ECB opted to keep its monetary policy unchanged this month, President Christine Lagarde issued a stark warning over the Eurozone’s economic outlook, cautioning that Q4 growth looks to be below forecast as the bloc faces a ‘very negative’ November.
The Euro will remain centre stage today with the publication of the Eurozone’s latest GDP figures. Economists are forecasting a rebound of growth in the third quarter, but will this be enough to cheer EUR exchange rates?
US Dollar (USD) Strengthens as Record US GDP Fails to Cheer Markets
The US Dollar (USD) remained on the offensive through yesterday’s trading session as skittish investors continued to flock to the safe-haven currency.
This comes as a record bump in US GDP in the third quarter failed to cheer investors, who remained mostly focused on the impact surging coronavirus cases could have on global growth in Q4.
Coming up, with coronavirus concerns continuing to dominate market sentiment, the US Dollar will be well positioned to extend its bullish run, particularly if this afternoon’s PCE price index reports an uptick in US inflation in September.
Canadian Dollar (CAD) Undermined by Tumbling Oil Prices
The Canadian Dollar (CAD) continued to trend lower on Thursday as another sharp drop in oil prices saw investors shun the commodity-linked ‘Loonie’.
Australian Dollar (AUD) Slips on Coronavirus Concerns
The Australian Dollar (AUD) fell back again overnight on Thursday, with investors shying away from the perceived risk of the ‘Aussie’ amidst growing concerns over the potential economic fallout of the global resurgence in coronavirus cases.
New Zealand Dollar (NZD) Dented by Risk-Off Trade
The New Zealand Dollar (NZD) also weakened in overnight trade as skittish investors sought to limit their positions in the risk-sensitive ‘Kiwi’.