Pound (GBP) Undermined by Renewed No-Deal Brexit Jitters
The Pound (GBP) found itself on the defensive on Thursday, as recent Brexit optimism was shaken by the news that EU leaders demanded the European Commission publish its no-deal plans.
The move was seen as a sign that EU leaders have little faith in a post-Brexit trade deal being agreed before the end of 2020.
The publication of the UK’s retail sales figures has helped boost the Pound this morning, however, after sales growth remained surprisingly strong in October.
Euro (EUR) Subdued on Lagarde Coronavirus Warning
The Euro (EUR) was subdued through yesterday’s trading session, as European Central Bank (ECB) President Christine Lagarde warned the Eurozone’s second wave of coronavirus infections is causing significant economic damage.
Testifying to the European Parliament’s committee on economic and monetary affairs Lagarde said that the ECB is prepared to expand its monetary stimulus but also reiterated that EU leaders needed to prioritise fiscal stimulus as well.
In focus for EUR investors today will be the Eurozone’s latest consumer confidence index. We expect to see the Euro pressured if household sentiment weakened in November as forecast.
US Dollar (USD) Strengthens amid Rising Coronavirus Concerns
The US Dollar (USD) struck higher on Thursday, rising in line with growing concern over the second wave of coronavirus infections which continues to rip through the US and Europe as skittish investors flocked to the safe-haven currency.
However, slightly slowing the US Dollar ascent was the publication of last week’s initial jobless figures as a surprise jump reversed five weeks of consecutive declines, stoking concern over the US labour market while domestic coronavirus cases spike.
Looking ahead, the US Dollar is likely to remain in vogue through to the end of the week, so long as gloomy coronavirus statistics continue to dominate the headlines.
Canadian Dollar (CAD) Muted Following Gloomy Employment Report
The Canadian Dollar (CAD) was stuck in a narrow range yesterday, after Canada’s latest ADP employment figures reported domestic employment shrank by 79,500 last month, while the jobs deficit in September was revised up to over 500,000.
Coming up, there may be more challenges ahead for the Canadian Dollar as this afternoon’s retail sales figures are expected to reveal domestic sales growth slowed in September.
Australian Dollar (AUD) Rebounds from Lows on Upbeat Retail Sales
The Australian Dollar (AUD) strengthened overnight on Thursday, recouping some of its losses from the European session after Australia’s latest retail sales figures beat forecasts.
New Zealand Dollar (NZD) Subdued as Consumer Spending Continues to Drop
The New Zealand Dollar (NZD) remained muted in overnight trade as New Zealand reported another drop in credit card spending in November, the 8th consecutive month of contracting consumer spending.