Pound News: UK Funding Fears Keep Sterling under Pressure
The Pound continued to weaken today, with lingering coronavirus and Brexit fears weighing on the Sterling.
Added to these fears, today’s speculation that the UK government is preparing to ramp up infrastructure plans for Britain were not enough to support demand for the Pound as concerns over how the government will fund these plans offset any optimism.
Britain’s final Q1 growth rate results will be published tomorrow. As they are from Q1, any movement in the Pound could be limited as much of the data is before the coronavirus lockdown. Instead, this week’s UK-EU Brexit talks will remain the focus for GBP investors.
Euro News: EU’s Strong Coronavirus Handling Keeps EUR Afloat
Despite much of the global economy panicking on ‘second wave’ fears, markets remain cautiously optimistic about the EU’s coronavirus plans. Officials from Germany and France are expected to make progress in agreeing further stimulus soon.
Developments in the EU’s stimulus plans could keep the Euro appealing this week. This is likely to overshadow tomorrow’s Eurozone inflation rate results as well.
US Dollar News: Surge in US Coronavirus Cases boosts USD’s Safe Haven Appeal
The US Dollar continued to be lifted by a loss of risk appetite as coronavirus cases rose in the US.
The surge in reported coronavirus cases in major US states and cities worried investors over the impact on the US economy reopening, boosting the safe-haven US Dollar.
Federal Reserve Chairman Jerome Powell will speak tomorrow. If his testimony comes across as more dovish amid the surge in US coronavirus cases, the US Dollar gains on safe-haven demand may be capped.
Canadian Dollar News: GBP/CAD Down despite Tumbling Oil Prices
The oil-linked Canadian Dollar was strong enough to push the Pound lower today, despite falling oil prices due to coronavirus fears.
If oil prices continue to fall, they could lead to Canadian Dollar losses in the coming days. Tomorrow will see the publication of Canada’s April growth rate, which may also drive movement.
Australian Dollar News: Safe Haven Demand Limits AUD Appeal
The Australian Dollar continued to advance against Sterling today. However, it was unable to hold its best levels as rising coronavirus fears made investors more eager to look for safe havens. This has meant limited demand for the risk-correlated Australian Dollar.
Notable comments from Reserve Bank of Australia (RBA) policymakers tomorrow could influence the Australian Dollar. Coronavirus and risk-sentiment developments are likely to remain the focus though.
Tuesday, 30th June
07:00 UK Growth Rate
07:00 UK Business Investment
07:45 French Inflation Rate
10:00 Eurozone Inflation Rate
13:30 Canadian Growth Rate
17:30 Fed Chairman Powell Testimony