Australian Dollar (AUD) Strengthens amid Upbeat Market Mood
The Australian Dollar (AUD) saw itself heading higher during yesterday’s session as a weakening US Dollar (USD) and upbeat mood bolstered the appeal of the ‘Aussie.’
This help to reverse an initial downturn in AUD exchange rates falling the publication of a weaker-than-expected domestic retail sales report at the start of the session.
Investors will be keeping an eye on the latest flash PMI figures from Australia later this week, with a positive reading potentially lifting the Australian Dollar.
Pound (GBP) Supported by UK Economic Recovery Hopes
The Pound (GBP) found itself supporting during this week’s opening European session as cautious optimism surrounding the UK’s economic recovery kept Sterling appeal high.
Despite a further four-week lockdown extension in the UK announced last week, hospital admissions remain low for those who have contracted coronavirus.
Pound investors will look towards flash PMI figures alongside the Bank of England’s (BoE) interest rate decision later in the week which could push Sterling higher.
Euro (EUR) Strengthens on US Dollar Pullback
The Euro’s (EUR) negative correlation with the US Dollar help propel the single currency higher throughout the European trading session yesterday.
This also helped the Euro to offset comments by European Central Bank (ECB) President Christine Lagarde in which she warned against tightening monetary policy too soon.
Preliminary Markit PMI data from the Eurozone and Germany released mid-week could add some much-needed support to the Euro if the figures continue to show a sustained economic recovery.
US Dollar Weakens on Upbeat Market Mood
The US Dollar weakened during yesterday’s session following as last week’s hawkish stance from the Federal Reserve regarding hiking interest rates gave way to a bout of profit taking
A more upbeat market mood has also limited the appeal of the ‘Greenback’ as investors flock to risk-correlated currencies.
The start of this week’s economic calendar is quieter for the US Dollar, however Wednesday’s flash PMI figures the US will give an indication into how the US economy is performing.
Canadian Dollar (CAD) Supported by Rising Oil Prices
The Canadian Dollar strengthened during yesterday’s session as oil prices rose, with WTI crude climbing over 1% to strike $72 a barrel.
New Zealand Dollar (NZD) Strengthens on Risk-on Trade
The New Zealand Dollar (NZD) found itself heading higher during yesterday’s session as risk-on trade supported the ‘Kiwi.’
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