Pound Slips on UK Coronavirus Fears

Australian Dollar (AUD) Edges Higher amid Upbeat Market Mood

The Australian Dollar (AUD) continued to find support amid an upbeat market mood and a weakness in the US Dollar yesterday.

However, ‘Aussie’ gains were limited as a lack of notable data couldn’t push the currency to make significant gains against its rivals.

Australian Dollar investors will be keeping an eye on the market mood in the coming days, with a further pullback in the US Dollar potentially allowing AUD to head higher.

Pound (GBP) Stumbles on UK Coronavirus Concerns

The Pound (GBP) weakened during yesterday’s session as the Indian variant of the coronavirus looks to derail the UK’s roadmap out of lockdown.

The UK government has quietly updated advice on their website surrounding travel in and out of Indian variant hotspots in the country, which has angered MP’s who have complained they were not informed.

Sterling could be open to further losses in the coming days due to a lack of economic data from the UK.

Euro (EUR) Supported by German Ifo Business Climate

The Euro (EUR) was supported during yesterday’s European session as a better-than-expected German Ifo Business Climate index offset a contraction in German GDP.

Despite German GDP contracting more than expected to -1.8% during Q1, the Ifo Business Climate rose to a two-year high of 99.2 points.

Tomorrow will see the release of the latest German GfK Consumer Confidence which is expected to rise to -3 points, though remaining in contraction the reading would be the highest in 6 months.

US Dollar (USD) Weakens amid Dovish Federal Reserve

The US Dollar (USD) weakened against many of its major rivals as dovish commentary from the Federal Reserve and a broadly appealing market mood limited the appeal of the ‘Greenback.’

The Federal Reserve have maintained a dovish stance regarding the US economic outlook and have gone as far to say that stimulus is still needed to support recovery despite inflationary pressure.

Looking ahead, USD investors will look toward the latest initial US jobless claims tomorrow which if continue to fall at a sustained pace could see the currency head higher.

Canadian Dollar (CAD) Weakens on Disappointing Manufacturing Sales

The Canadian Dollar weakened yesterday as preliminary manufacturing sales in Canada fell back into contraction during April.

New Zealand Dollar (NZD) Firms on Upbeat Market Mood

The New Zealand Dollar (NZD) spent much of yesterday’s session steady as an upbeat market mood continued to support the currency against many of its rivals.
Today the Reserve Bank of New Zealand (RBNZ) will announce its interest rate decision which could see the ‘Kiwi’ head higher if the bank strikes a hawkish tone.

Data Releases

May 26th 08:45 NZD Balance of Trade (Apr) N$-100M
May 26th 11:30 AUD AU Westpac Leading Index MoM (Apr) 0.2%
May 26th 12:00 NZD NZ Interest Rate Decision 0.25%
May 26th 13:00 NZD NZ RBNZ Press Conference

Mathew Andrews

mathew.andrews@torfx.com


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