Australian Dollar (AUD) Fluctuates on Coronavirus Developments
The Australian Dollar (AUD) got off to a solid start this week, finding some support at the opening of the session as risk appetite was buoyed by reports China was progressing well on a coronavirus vaccine. However, the ‘Aussie’ began to relinquish these gains through the European session as a startling rise in US infections spooked investors.
Turning to today’s session it’s likely the Australian Dollar will remain highly sensitive to market sentiment, potentially limiting any upside in the currency if the situation in the US continues to deteriorate.
Pound (GBP) Slips on Brexit Worries
The Pound (GBP) was left in the lurch at the start of this week’s session as renewed Brexit jitters weighed on the currency. Further limiting the appeal of Sterling were comments from the Bank of England’s (BoE) Gertjan Vlieghe, who hinted that interest rates may have further to fall in the future.
Looking ahead, the focus for GBP investors today will be a speech from Boris Johnson in which the PM is expected to outline his plans for the UK’s post-lockdown economic recovery.
Euro (EUR) Buoyed by Upbeat Data
The Euro (EUR) ticked higher yesterday as Eurozone economic sentiment continued to improve this month as more countries eased their lockdown measures. Also buoying the single currency was Germany’s latest consumer price index as inflation in the Eurozone largest economy accelerated faster than expected in June.
Coming up, will this evening’s Eurozone CPI figures show a similar improvement? Expect the Euro to enjoy some modest gains if the bloc avoided deflation this month.
US Dollar (USD) Lifted by Coronavirus Concerns
The US Dollar (USD) ticked higher overnight on Monday as investors remained nervous amid a worrying rise in coronavirus cases, particularly in the US. While investors raised concerns about how the spike in cases could impact the reopening of the US economy, it did little to quell demand for the safe-haven ‘Greenback’.
This uptrend in the US Dollar is likely to extend through today’s session as well, so long as negative coronavirus developments persist.
Canadian Dollar (CAD) Steady as Oil Prices Rise
The Canadian Dollar (CAD) held in a narrow range on Monday night, with the commodity-linked ‘Loonie’ able to avoid any losses thanks to a modest upswing in oil prices.
New Zealand Dollar (NZD) Fluctuates in Mixed Trade
The New Zealand Dollar (NZD) fluctuated in trade yesterday, with the ‘Kiwi’s initial gaining on reports of positive coronavirus vaccine trials in China, but the gains quickly gave way to losses amid worries over a global resurgence of cases.
30th June 12.30 USD Dallas Fed Manufacturing Index (June) -6.1
30th June 16.00 GBP GDP Growth Rate Final Q1 -1.6%
30th June 16.00 GBP UK Business Investment YoY Q1 -0.7%
30th June 19.00 EUR Eurozone Core Inflation Rate YoY (June) 0.8%
30th June 22.30 CAD Canada GDP MoM (April) -13%
1st July 02.30 USD Fed Chair Powell Testimony