Pound to US Dollar Falls on Brexit Jitters
The Pound (GBP) struck lower through yesterday’s trading session, with the currency once again falling victim to uncertainty over Brexit.
This return of Brexit uncertainty weakened the Pound to US Dollar exchange rate as the pairing fell away from the $1.34 barrier. Meanwhile, the GBP/EUR exchange rate managed to hold above €1.12.
This followed media reports that the EU’s chief Brexit negotiator Michel Barnier would call off his trip to London today unless the UK is willing to offer concessions.
In the absence of any notable economic data, the focus for GBP investors will remain on Brexit, potentially leaving the Pound vulnerable to additional losses unless there are any positive developments.
Euro (EUR) Rangebound on Gloomy German Confidence Survey
The Euro (EUR) struggled for direction on Thursday, as the single currency’s initial bullish momentum faded after German Chancellor Angela Merkel announced that Germany’s current coronavirus restrictions would be extended through December.
Further limiting the appeal of the Euro was the publication of Germany’s consumer confidence index as the outlook for December fell to a five-month low.
Coming up this morning, the publication of the Eurozone’s latest economic sentiment figures look likely to put some pressure on the single currency as sentiment looks to have deteriorated again in November.
US Dollar (USD) Buoyed by Souring Market Sentiment
Despite thin trading conditions due to closed US markets for Thanksgiving, the US Dollar (USD) struck higher during yesterday’s European session in response to rising demand for the safe-haven currency.
This came as the market optimism from earlier in the week began to fade, prompting a pullback in equities, which in turn made the ‘Greenback’ more attractive.
It’s set to be another slow day for US economic data today, with the early closure of US markets likely to result in limited price action in the US Dollar.
Canadian Dollar (CAD) Muted as Oil Prices Retreat
The Canadian Dollar (CAD) edged lower through yesterday’s trading session, with demand for the commodity-linked ‘Loonie’ undermined by an approximate 1% fall in oil prices.
Australian Dollar (AUD) Strengthened by Vaccine Optimism
The Australian Dollar (AUD) edged higher overnight on Thursday, with the risk-sensitive ‘Aussie’ finding support from lingering coronavirus optimism.
New Zealand Dollar (NZD) Buoyed by Comments from NZ Treasury
The New Zealand Dollar (NZD) also struck higher in overnight trade, as NZD investors welcomed the NZ treasury’s latest weekly report in which it suggested there is upside risk to GDP in light of the recent jump in domestic retail sales.