Australian Dollar (AUD) Weakens on Back of Cautious Market Mood
The Australian Dollar (AUD) found itself weakening throughout Thursday’s trading session in response to a souring of market risk appetite.
This slump in market sentiment was driven primarily by concerns over the recent rise in global coronavirus cases, which also triggered another equity selloff yesterday.
The Australian Dollar could be open to additional losses today if the market mood becomes even more cautious and investors continue to shun risk-sensitive assets.
Pound (GBP) Edges Lower on UK Coronavirus Reopening Concerns
The Pound (GBP) weakened yesterday, on the back of growing doubts surrounding the UK government’s proposed lockdown easing on 19 July.
A letter published in medical journal The Lancet called the move by the government ‘dangerous and premature’ as cases in the UK continued to climb at a dizzying pace.
In the spotlight for GBP investors today will be the UK’s latest monthly GDP figures. Will a strong growth reading in May allow Sterling to close the week on a positive note?
Euro (EUR) Surges Following ECB Inflation Review
The Euro (EUR) roared higher against many of its major rivals during yesterday’s European session as the European Cental Bank’s (ECB) announced its new inflation target.
The move to adopt a symmetric inflation target of 2% is more dovish than its previous mandate, but still sent EUR exchange rates higher as it remains more hawkish than the Federal Reserve’s current inflation goals.
Euro investors will look to speech a from ECB President Christine Lagarde for fresh impetus today. Will her comments help the Euro to end the week on a high?
US Dollar (USD) Rallies as Risk Appetite Slumps
The US Dollar (USD) struck higher against the majority of its peers on Thursday as skittish investors favoured safe-haven assets, amidst a selloff in equity markets.
This comes as USD exchange rates quickly rebounded from a small setback on Wednesday, after the minutes from the Federal Open Market Committee (FOMC) latest meeting struck a more dovish tone than expected.
An absence of any notable data from the US will see investors keeping an eye on the global market mood, further caution surrounding risk-on trade would push the ‘Greenback’ higher.
Canadian Dollar (CAD) Stumbles on Weakening Oil Prices
The Canadian Dollar (CAD) slumped during yesterday’s session as the continued drop in oil prices reflected poorly on the commodity-linked currency.
Today’s employment figures from Canada could help the ‘Loonie’ to reverse these losses, if unemployment fell as expected last month.
New Zealand Dollar (NZD) Weakens on Risk-Off Trade
The New Zealand Dollar (NZD) found itself struggling on Thursday as the prevailing risk-off mood left the ‘Kiwi’ open to losses.
Data Releases
Jul 9th 16:00 GBP GDP (May) 1.5%
Jul 9th 16:00 GBP Industrial Production (May) 1.5%
Jul 9th 20:00 EUR ECB President Lagarde Speech
Jul 9th 22:30 CAD Employment Change (Jun) 195k