Today’s Currency News: Pound to US Dollar Soars to Two-Year High

Pound (GBP) Rallies on Brexit Hopes

The Pound (GBP) struck higher on Thursday, rallying in response to apparent optimism that a last-minute Brexit trade deal between the UK and EU may still be found.

This came on the back of some comments from Ireland’s Foreign Minister Simon Coveney and UK Education Secretary Gavin Williamson, who both seemed hopeful a deal could be struck in the coming days.

However, reports overnight suggest the chance of a breakthrough have receded, after the EU allegedly brought ‘new elements into the negotiations’ at the ‘11th hour’, concerns over which could see the Pound retreat through today’s session.

 

Euro (EUR) Firms as Retail Sales Rebound

The Euro (EUR) continued to push higher yesterday, albeit at a more modest pace than it has earlier in the week, as the single currency continued to benefit from broad weakness in the US Dollar (USD).

This uptrend in the Euro was also supported by some positive retail sales figures as Eurozone sales growth rebounded from –1.7% to 1.5% in October.

Kicking off today’s session was the publication of Germany’s latest factory order figures, which look to offer support to the Euro following a stronger-than-expected uptick in order growth in October.

 

US Dollar (USD) Extends Losses in Upbeat Trade

The US Dollar (USD) continued to trend lower through yesterday’s trading session, as demand for the safe-haven currency continued to be curbed by the upbeat market sentiment.

This came on the back of hopes for both a new US stimulus package as well as suggestions the US will soon approve the first coronavirus vaccines for use.

Coming up, the spotlight today will be on the latest US payroll figures. Will a slowing of employment growth in November be another cause of concern for USD investors?

 

Canadian Dollar (CAD) Subdued amid OPEC Talks

The Canadian Dollar (CAD) struggled to find support on Thursday, with the appeal of the commodity linked ‘Loonie’ being limited by fluctuating oil prices as OPEC discussed the potential rollover of production cuts into the new year.

However, could the Canadian Dollar fare better today, if Canada’s latest jobs reports reveals the recent downtrend in unemployment continued into November?

 

Australian Dollar (AUD) Dips as Retail Sales Disappoint

The Australian Dollar (AUD) fell overnight on Thursday as Australia’s finalised retail sales releases for October printed slightly below its preliminary release.

 

New Zealand Dollar (NZD) Strengthens in Risk-On Trade

The New Zealand Dollar (NZD) climbed higher in overnight trade, with continued improvement in market risk appetite bolstering the appeal of the high-yield ‘Kiwi’.

Matthew Andrews

Contact Matthew Andrews


Related