Euro US Dollar Exchange Rate Refreshes One-Month High as Market Mood Improves

Pound (GBP) Buoyed by Upbeat Mood

The Pound firmed at the end of last week, with GBP/USD finishing the week at $1.38 and the Pound Euro exchange rate returning near the week’s opening levels.

GBP exchange rates received support in upbeat trade and easing concerns over the UK’s vaccination programme.

At the same time, Sterling’s gains were tempered by trade figures out of Europe that revealed UK exports to the EU have almost halved so far this year.

GBP investors will have a slew of high-impact UK data releases this week, kicking off with February’s jobs report which may lend support to the Pound if unemployment remained flat and wage growth continued to rise at a strong pace.

Euro (EUR) Buoyed by Positive Coronavirus Stats

The Euro ticked higher on Friday, supported by a pullback in the US Dollar and signs that Europe may have turned the corner in its latest fight against the coronavirus.

This came as Paris reported that cases are starting to fall as infection rates in other European countries look to be peaking, while at the same time the Eurozone’s vaccine rollout continues to accelerate, reaching nearly 20% of the bloc’s population.

Looking ahead, the primary focus for EUR investors this week will be on the European Central Bank’s (ECB) latest policy meeting. No policy changes are expected, but will Europe’s recent coronavirus woes prompt a more cautious outlook from the bank?

Meanwhile, the Euro US Dollar exchange rate is continuing to strengthen this morning, with EUR/USD pushing above €1.20.

US Dollar (USD) Weakened by Upbeat Sentiment

The US Dollar stumbled at the end of last week’s session as a prevailing risk-on mood and slump in US Treasury yields dented the appeal of the ‘Greenback’.

These losses then accelerated after the University of Michigan’s latest consumer sentiment index printed below expectations in April.

Turning to this week, the US Dollar may face additional pressure so long as an increasingly upbeat outlook continues to dampen safe-haven demand.

Canadian Dollar (CAD) Muted as Oil Prices Stall

The Canadian Dollar held in a narrow range on Friday, with the commodity-linked ‘Loonie’ struggling to attract support as oil prices stalled.

Australian Dollar (AUD) Bolstered by Launch of Travel Bubble

The Australian Dollar ticked higher at the start of this week’s session, rallying overnight during the Asian trading session as AUD investors welcomed the opening of a travel bubble between Australia and New Zealand.

New Zealand Dollar (NZD) Also Lifted by Travel Bubble

The New Zealand Dollar also firmed in overnight trade as NZD investors also welcomed the start of New Zealand’s new travel bubble with Australia.

Matthew Andrews

Contact Matthew Andrews