Australian Dollar (AUD) Strengthens on back of Risk-On Trade
The Australian Dollar (AUD) found itself strengthening throughout Wednesday’s trading session in response to a more upbeat market mood.
Any major gains were limited however as Australia continues to deal with an ongoing coronavirus outbreak which has seen half of Australian’s population thrust back into lockdown restrictions.
The Australian Dollar could be open to losses today if the market mood sours and investors return to safe-haven assets.
Pound (GBP) Mixed on UK Coronavirus Woes
The Pound (GBP) had been mixed for much of Wednesday’s session as concerns over the UK’s coronavirus situation continues to worry investors.
Businesses’ are calling on the UK government to provide more guidance surrounding the NHS Track and Trace app, as supply-chains begin to crack under the pressure of workers having to self-isolate.
In the spotlight for GBP investors this evening will be the Confederation of British Industry’s latest industrial trends release which could provide much needed support to Sterling, if July’s figures print positively.
Euro (EUR) Struggles as Markets Await ECB Decision
The Euro (EUR) struggled for direction during yesterday’s session as an absence of economic data from the Eurozone did nothing to support the single currency.
More so investors have been cautious to take any risks as investors await the latest European Central Bank (ECB) interest rate decision during today’s session.
Euro investors will look to see in the bank takes a different stance towards monetary policy following the banks recent strategic overhaul.
US Dollar (USD) Dips on back of Upbeat Market Mood
The US Dollar (USD) dipped against the majority of its peers on Wednesday as a more upbeat market mood limited demand for the safe-haven ‘Greenback’.
More so an absence of notable economic data from the US has left the currency open to further losses as investors’ eye today’s ECB interest rate decision.
Overnight the latest initial US jobless claims could provide USD exchange rates with fresh support if new claims continued to fall last week.
Canadian Dollar (CAD) Strengthens as Oil Prices Regain Traction
The Canadian Dollar (CAD) strengthened during yesterday’s session as a sharp rally in oil prices supported the commodity-correlated ‘Loonie’.
New Zealand Dollar (NZD) Holds onto Modest Gains
The New Zealand Dollar (NZD) steadily rose during Wednesday’s session as a strengthening market mood bolstered the ‘Kiwi’s’ appeal.
Data Releases
Jul 22nd 20:00 GBP CBI Industrial Trends Orders (Jul) 16
Jul 22nd 21:45 EUR ECB Interest Rate Decision 0.0%
Jul 22nd 22:30 USD Initial US Jobless Claims (17/Jul) 350k
Jul 23rd 00:00 EUR Consumer Confidence Flash (Jul) -2.5