Pound (GBP) Undermined by UK Coronavirus Concerns
The Pound (GBP) maintained a downward trajectory through yesterday’s trading session, with the UK’s latest coronavirus statistics sounding alarm bells amongst GBP investors.
Traders are increasingly questioning the government’s decision to lift all coronavirus restrictions in England this week, amidst fears it may be forced to reimpose some measures as infection rates skyrocket.
In the continued absence of any notable UK economic releases today, it’s likely the downside in the Pound could extend into another session as the UK’s coronavirus situation continues to deteriorate.
Euro (EUR) Buoyed despite Europe’s Coronavirus Rise
The Euro (EUR) traded with modest gains yesterday, with the single currency prevailing as number of its peers were undermined by coronavirus concerns.
However, tempering the upside in EUR exchange rates were also concerns over Europe’s own coronavirus situation, as many countries within the Eurozone report that new cases are on the rise.
Looking ahead, movement in the Euro may prove even more limited today, with EUR investors reluctant to make any aggressive bets on the single currency, ahead of the European Central Bank’s (ECB) latest rate decision.
US Dollar (USD) Firms amidst Strong Safe-Haven Demand
The US Dollar (USD) enjoyed strong support again on Tuesday, with the gloomy market mood prompting investors to flock to the safe-haven currency.
Renewed uncertainty over the global economic outlook, in light of the resurgence in coronavirus cases, continues to drive markets and favour the ‘Greenback’.
As such, there remains plenty of upside potential in the US Dollar, which is likely to extend its gains today, assuming that the risk-off mood continues to prevail.
Canadian Dollar (CAD) Undermined by Soft Oil Prices
The Canadian Dollar (CAD) drifted lower on Tuesday, with the appeal of the commodity-linked ‘Loonie’ remaining limited as oil prices continued to weaken.
Australian Dollar (AUD) Slumps as Retail Sales Disappoint
The Australian Dollar (AUD) extended its losses overnight on Tuesday, following the publication of Australia’s latest retail sales figures, which reported a surprisingly sharp contraction of sales growth in June.
This downside in the ‘Aussie’ was reinforced by the extension of coronavirus restrictions in Australia’s two most populous states.
New Zealand Dollar (NZD) Muted in Bearish Trade
The New Zealand Dollar (NZD) remains close to a six-month low this morning, after the risk-sensitive currency came under some pressure again in overnight trade, amidst a prevailing risk-off environment.