Pound (GBP) Tumbles as Mutated Coronavirus Causes Panic
The Pound (GBP) faced an aggressive sell-off at the start of this week’s session after the emergence of a new, more-viral strain of Covid-19 in the UK prompted a number of countries to ban UK travellers.
GBP investors were particularly spooked by France’s move to impose a 48 hour ban on all freight from the UK, which threatened to throw domestic supply chains into chaos. The GBP/EUR exchange rate hit a three-month low.
However, Sterling was able to recoup a large chuck of its losses later in the evening after reports suggested there had been some movement in Brexit talks in regards to fishing rights.
Looking ahead, the Pound is likely to remain volatile through today’s session as Brexit and coronavirus developments drive the currency.
Euro (EUR) Undermined by Coronavirus Concerns
Trade in the Euro (EUR) was mixed on Monday, with the rush to the US Dollar (USD) driving the single currency lower through the first half of the European session.
However, EUR exchange rates rallied in the second half of the session after data reported a marked improvement in Eurozone consumer confidence this month.
Looking ahead, EUR investors are likely to keep a close eye on coronavirus developments in the days to come, with the Euro poised to slump if the new strain of coronavirus is detected anywhere on the continent.
US Dollar (USD) Surges as Risk Appetite Sours
The US Dollar (USD) roared higher through yesterday’s session as renewed coronavirus concerns triggered a sell-off in equity markets and sent investors scrambling to the safe-haven currency.
However, tempering the US Dollar’s gains somewhat was optimism over the next round of US stimulus, ahead of the passing of a new $900bn package by the US Senate.
Looking ahead, with investors still spooked over the spread of a more infectious coronavirus strain, it’s likely the US Dollar will remain in firm demand throughout today’s session.
Canadian Dollar (CAD) Weakened by Plunge in Oil Prices
The Canadian Dollar (CAD) ticked lower on Monday as the appeal of the commodity-linked ‘Loonie’ was dampened after WTI crude prices tumbled almost 5% to $46 a barrel.
Australian Dollar (AUD) Dips Despite Robust Retail Sales Figures
The Australian Dollar (AUD) trended lower overnight on Monday, as cautious trade continued to dampen the appeal of the risk-sensitive ‘Aussie’ in spite of Australia’s latest retail sales figures printing well above expectations.
New Zealand Dollar (NZD) Retreats in Jittery Trade
The New Zealand Dollar (NZD) also fell back in overnight trade as the appeal of the ‘Kiwi’ continued to be undermined by renewed coronavirus jitters.