Pound News: Sterling Steadies as Investors Look to Brexit Negotiations
The Pound saw mixed movement today as the British currency avoided further losses due to improving global market sentiment.
Now that the US presidential election appears to have passed, Pound investors are looking ahead to Brexit developments again, with optimism that a Brexit deal will be reached, but markets await more solid news.
Britain’s September job market report will be published tomorrow, which if it indicates the UK is weathering the coronavirus pandemic, could boost Sterling sentiment.
Euro News: Euro Falls amid Upbeat Market Mood
Despite the Euro usually benefitting from its negative correlation with a weak US Dollar, the single currency fell today amid highs in equity markets and an increased appetite for risk-sensitive currencies driven by Biden’s win and positive Covid-19 vaccine progress.
Today also saw fresh comments from European Central Bank (ECB) President Christine Lagarde, but no notable comments on Eurozone monetary policy were made.
Tomorrow’s French production data and Eurozone economic sentiment figures could cause some Euro movement, although the focus is likely to remain on the market mood and vaccine optimism.
US Dollar News: Markets Buoyed by Vaccine News, Safe-Haven US Dollar Slides
The safe-haven US Dollar fell through today’s session as a risk-on mood swept equity and currency markets following Pfizer’s announcement that results show its Covid-19 vaccine to be 90% effective in large-scale trials.
The US Dollar has also weakened on the decline in safe-haven demand after Biden’s presidential victory was confirmed over the weekend, lifting market optimism this morning.
US job openings data due tomorrow could give investors a better idea of how the US job market is weathering the coronavirus pandemic, while market risk sentiment will likely keep the safe-haven US Dollar weak.
Canadian Dollar News: ‘Biden Bounce’ Benefitting CAD
The Canadian Dollar strengthened slightly today, benefitting from a rise in risk appetite in reaction to news that Joe Biden had won the US 2020 Presidential Election.
However, Canadian Dollar gains were limited as prices of oil, Canada’s biggest export, remain weak on global coronavirus fears.
No notable Canadian data will be published tomorrow, as a result risk sentiment and oil prices will continue to drive CAD movement.
Australian Dollar News: Risk Sentiment Surges amid ‘Biden Bounce’
Currencies often correlated to risk and trade sentiment, like the Australian Dollar, climbed as markets showed relief that Joe Biden had won the US presidential election and positive news of progress to a Covid-19 vaccine.
The Australian Dollar is also benefitting from a relatively optimistic coronavirus outlook as coronavirus cases have been near zero over the past week, boosting hopes of an economic recovery soon.
Australian business confidence data, due tomorrow, could influence AUD movement slightly, but the focus will remain on market risk sentiment.
Tuesday, 10th November
00:30 Australian NAB Business Confidence
07:00 UK Job Market Report
07:45 French Industrial Production
10:00 German and Eurozone Economic Sentiment
15:00 US JOLTs Job Openings
15:00 US IBD/TIP Economic Optimism