Pound (GBP) Muted as Coronavirus Remains in Focus
The Pound (GBP) registered modest losses at the start of this week’s session amidst ongoing concerns over England’s lockdown impact on the UK economy.
Ultimately these losses were capped, however, by the continued acceleration of the UK’s vaccine rollout after the government expressed optimism that the vaccine might be offered to all adults by September.
Coronavirus developments are likely to remain the key focus for GBP investors today, with the Pound potentially finding some support if domestic cases continue to fall.
Euro (EUR) Flat on Mixed European Political Developments
The Euro (EUR) struggled to find momentum on Monday as concerns over the potential collapse of Italy’s government following the breakdown of its ruling coalition weighed on the single currency.
However, EUR exchange rates were prevented from sustaining any real losses by the news that Armin Laschet has been elected leader of Chancellor Angela Merkel’s CDU Party, with hopes that Laschet will preserve Merkel’s legacy for moderate politics and economic strength should he win this year’s national election.
Looking ahead, the spotlight today will be on the latest ZEW economic sentiment index for the Eurozone. This could lend some support to the Euro this morning if sentiment continued to improve this month.
US Dollar (USD) Firms in Cautious Mood
The US Dollar (USD) enjoyed some modest gains yesterday as a mixed market mood and thin trading conditions saw investors slightly favour safe-haven assets.
This came amidst ongoing concerns over the recent surge in global coronavirus cases, which appeared to offset some upbeat Chinese GDP figures.
Looking ahead, in the absence of any notable US data releases, the focus for USD investors today is likely to be on the upcoming inauguration of Joe Biden and his expected policy priorities.
Canadian Dollar (CAD) Rangebound on Subdued Oil Prices
The Canadian Dollar (CAD) was mostly rangebound through Monday’s trading session as a modest pull back in oil prices left the commodity-linked ‘Loonie’ directionless.
Australian Dollar (AUD) Rallies as Market Mood Improves
The Australian Dollar (AUD) ticked higher overnight on Monday, with the risk sensitive currency recouping some of its previous losses as hopes for additional US stimulus helped to lift market sentiment.
New Zealand Dollar (NZD) Undermined by New Coronavirus Travel Restrictions
The New Zealand Dollar (NZD) failed to capitalise on the improving market mood in overnight trade as NZD investors were left disappointed by the NZ government’s announcement of stricter travel restrictions.