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Bank of England’s (BoE) Mixed Tone Leaves Markets Jittery

Pound News: Sterling Struggles to Sustain Gains as Bank of England (BoE) Stance Mixed

The Bank of England (BoE) surprised investors with a split stance on quantitative easing (QE) today. As one policymaker felt QE didn’t need expanding, this was perceived as hawkish, helping the Pound to avoid losses. On the other hand though, the Pound was weighed by concerns that the bank hadn’t ruled out negative interest rates yet.

Continued reaction to the BoE decision could drive Sterling into tomorrow. Pound investors will also be closely watching tomorrow’s UK retail sales results for signs of how Britain’s economy is being impacted by the coronavirus pandemic.

 

Euro News: Rival Currencies Drive EUR Amid Lack of Fresh Impetus

There has been little in the way of influential Eurozone news lately. As market risk-sentiment slowly fades, investors seek out safer currencies. This is leaving the Euro weaker as its rivals like the safe US Dollar are benefitting.

German PPI data and Eurozone current account stats will be published tomorrow. Low-influence data means the Euro will likely continue to be driven by rival movement.

 

US Dollar News: USD Up as Investors Move Towards Safer Havens

The US Dollar’s recovery attempt gained steam today. Rising fears that the global coronavirus pandemic could soon see a ‘second wave’ have made investors less willing to take risks. This is boosting safe haven demand, including the US Dollar.

The US Dollar’s potential for gains could be limited though. Markets are anxious about the coronavirus pandemic continuing to impact the US economy going forward, which is keeping a cap on USD appeal.

 

Canadian Dollar News: Oil Prices Keeping CAD Up despite Risk-Aversion

The Canadian Dollar was able to gain against a jittery Pound today. Rising oil prices supported the oil-correlated Canadian Dollar. This was despite rising coronavirus ‘second wave’ fears weighing on market risk-sentiment.

Canadian retail sales results will be published tomorrow. After days of weak Canadian data and worsening risk-sentiment, the Canadian Dollar could weaken if retail data disappoints as well.

 

Australian Dollar News: ‘Aussie’ Resilience defies Risk-Sentiment

The Pound to Canadian Dollar exchange rate struggled to advance today. It was due largely to Pound weakness, but the Australian Dollar has been surprisingly resilient despite weaker market risk-sentiment and poor Australian job data.

Shifts in risk-sentiment will continue to drive the Australian Dollar for now, until Australian PMI data from June is published next week

 

Upcoming Data

Friday, 19th June

07:00    German PPI

07:00    UK Retail Sales

13:30    Canadian Retail Sales

18:00    Fed Chairman Powell Speech

 

James Spurway
Director of Sales and Dealing

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