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Coronavirus Chaos Hits Sterling as UK Government Toughens Stance

Pound News: UK Government’s Tougher Coronavirus Stance Causes GBP Losses

The Pound has been tumbling since Monday evening, when the UK government announced a tougher stance on its handling of the coronavirus pandemic. As many UK businesses announced shutdowns, layoffs and concerns over the economic outlook rose, the Pound fell yesterday.

Further developments from the government on its handling of the pandemic are likely to dominate the Pound’s movement today and in the coming days.

 

Euro News: Eurozone Outlook Begins to Weigh on Shared Currency

Yesterday saw the publication of dire survey stats for Germany and the Eurozone. ZEW’s economic sentiment stats showed shocking contractions. This, as well as a resurgence in demand for the US Dollar, left the Euro weaker yesterday.

If today’s Eurozone growth data disappoints, European Central Bank (ECB) easing speculation and Eurozone economic jitters could put further pressure on the Euro.

 

US Dollar News: USD Recovery Picks Up Steam as Investors Look for Safety

With Federal Reserve easing now largely priced in, the US Dollar’s recent weakness may be coming to an end. The US Dollar experienced a strong rebound in demand yesterday, benefiting from market demand for safe havens amid the worsening coronavirus pandemic.

Safe haven demand has meant the US Dollar is appealing despite weakness in US data. As a result, US Dollar investors are likely to brush over today’s US housing data.

 

Canadian Dollar News: Oil Price Rebound Too Limited to Boost CAD

The Canadian Dollar briefly rebounded yesterday due to a brief rebound in oil prices. However, oil prices quickly resumed their fall and CAD with it. On top of this, perceived pressure for the Bank of Canada (BoC) to keep cutting interest rates is further dampening Canadian Dollar appeal.

Today’s upcoming Canadian inflation rate data could influence Bank of Canada (BoC) rate cut bets if they surprise. Weaker inflation could pile even more downside pressure onto the Canadian Dollar.

 

Australian Dollar News: ‘Aussie’ Continues its Plunge as RBA Awaited

The risk and trade-correlated Australian Dollar remains one of the market’s weakest major currencies. As the coronavirus pandemic worsens and risk-aversion intensifies, the Australian Dollar continued to fall yesterday.

Australian Dollar investors are highly anticipating tomorrow’s session, when the Reserve Bank of Australia (RBA) is expected to announce fresh policy to support Australia’s economy.

 

Upcoming Data

 

Wednesday, 18th March

00:30    Australian Westpac Leading Index

10:00    Eurozone Trade Balance

10:00    Eurozone Inflation Rate

12:30    Canadian Inflation Rate

12:30    US Building Permits and Housing Starts

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