Pound (GBP) Strikes Higher on Brexit Hopes
The Pound (GBP) made solid gains at the start of this week’s session, buoyed by some cautious Brexit optimism.
However, while GBP investors welcomed positive comments from UK Foreign Secretary Dominic Raab, concerns over the remaining gaps in UK-EU trade talks, particularly fishing rights, tempered the uptick in Sterling.
Looking ahead, it’s safe to assume that Brexit will remain the sole focus for GBP investors through the remainder of the week, potentially helping the Pound pass some key hurdles of resistance so long as headlines remain broadly positive.
Euro (EUR) Rallies Despite Germany’s Gloomy CPI Figures
The Euro (EUR) opened this week’s session on strong footing, with the single currency continuing to benefit from the weakness of the US Dollar (USD) thanks to the negative correlation between the pairing.
However, the Euro’s gains were capped by the publication of Germany’s inflation figures, after they revealed the Eurozone’s largest economy fell deeper into deflation last month.
In the spotlight for EUR investors today will be the Eurozone’s latest consumer price index. Will another month of deflation in November weaken the Euro this morning?
US Dollar (USD) Slumps in End-of-Month Sell-Off
The US Dollar (USD) faced broad selling pressure through yesterday’s trading session as the ‘Greenback’ fell victim to end-of-month flows.
In light of recent coronavirus vaccine optimism and with Covid-19 cases rocketing throughout the US, investors appeared bearish towards the US Dollar ahead of December.
Coming up, Federal Reserve Chair Jerome Powell will testify before the Senate Banking Committee later today, in which he is likely to be grilled on the current state of the US economy.
Canadian Dollar (CAD) Firms as Oil Consolidates above $45
The Canadian Dollar (CAD) struck higher on Monday, with the appeal of the commodity-linked ‘Loonie’ strengthening as WTI oil held above $45 a barrel, consolidating last week’s gains.
This uptrend in CAD exchange rates may extend through today’s session as well, should Canada’s latest GDP figures print in line with expectations.
Australian Dollar (AUD) Rallies Following RBA Rate Decision
The Australian Dollar (AUD) rebounded in overnight trade after the Reserve Bank of Australia (RBA) concluded its latest policy meeting by keeping its monetary policy untouched, leaving the ‘Aussie’ able to rise on the back of some positive Chinese data releases.
New Zealand Dollar (NZD) Strengthens in Upbeat Trade
The New Zealand Dollar (NZD) also rallied overnight on Monday, with the appeal of the risk-sensitive currency bolstered by reports of further US stimulus measures.