Pound US Dollar and Euro Exchange Rates Rally as UK Economy Reopens
GBP exchange rates opened this week’s session on strong footing, with the Pound US Dollar exchange rate firming above $1.37.
Sterling sentiment was buoyed by the reopening of a large part of the UK economy, which allowed GBP/EUR to firm at €1.15.
Hopes that the reopening will spur a strong economic recovery helped to overshadow Brexit concerns after Boris Johnson’s spokesman suggested that significant differences remain in talks with the EU over the Northern Ireland Protocol.
Meanwhile, the Pound may continue its upward trend today after data published at the start of the European session revealed a rebound in domestic growth in February.
Euro (EUR) Steady as Retail Sales Impress
The Euro traded in a narrow range on Monday as upbeat Eurozone retail sales figures helped to counter ongoing concerns over Europe’s coronavirus woes.
Data published by Eurostat revealed that sales growth rocketed up from –5.2% to 3% in February, sailing past expectations for a more modest 1.5% expansion.
Looking ahead, the publication of the latest ZEW surveys could offer additional support to the Euro this morning if economic sentiment in Germany continued to improve this month.
US Dollar (USD) Mixed amid Fluctuating Market Risk Sentiment
The US Dollar initially strengthened during yesterday’s European trading session as a cautious mood saw investors favour the safe-haven currency.
However, this demand faded as the US session opened as equity markets began to recover and US Treasury yields retreated.
Coming up, the main focus today will be on the publication of the US consumer price index. Economists are forecasting that US inflation will have accelerated sharply last month, which if correct could see the US Dollar surge this afternoon.
Canadian Dollar (CAD) Slips despite Positive Oil Movement
The Canadian Dollar trended lower on Monday, with the commodity-sensitive ‘Loonie’ shedding some of its gains from last week’s upbeat jobs figures in spite of a solid uptick in oil prices.
Australian Dollar (AUD) Stumbles as Business Confidence Dips
The Australian Dollar ticked lower overnight on Monday, as the appeal of the ‘Aussie’ was dented by a weaker-than-expected business confidence index.
New Zealand Dollar (NZD) Slips amid USD Rebound
The New Zealand Dollar also retreated in overnight trade, with investors shunning the risk-sensitive ‘Kiwi’ amidst a rebound in the US Dollar.
Data Releases
07:00 GBP GDP (Feb)
07:00 GBP Trade Balance (Feb)
07:00 GBP Industrial Production (Feb)
10:00 EUR German ZEW Economic Sentiment (Apr)
13:30 USD Inflation Rate (Mar)