pound receeding

Coronavirus Developments Keep Higher Risk Currencies Under Pressure

Pound News: Sterling Slips despite Vaccine News

The Pound remains on the back foot despite vaccination efforts being ramped up.

Higher-risk currencies are under pressure as investors turn to safe-haven currencies like the US Dollar.

If it appears that the lockdown measures deployed in the UK will be tightened or extended the Pound could suffer.

Euro News: Safe Haven Appetite Buoys Euro

While the latest Eurozone news continues to be largely unsurprising, the Euro has been rising against some major rivals today. Investors perceive the Euro as being relatively safe amid coronavirus jitters, so it is benefitting from safe haven demand.

Tomorrow will see the publication of German inflation stats, and ZEW’s economic sentiment reports for Germany and the Eurozone. If they impress investors, the Euro may become even sturdier.

US Dollar News: Safe Haven US Dollar Continues to Recover

The US Dollar is a safe haven currency, that often benefits in times of global market uncertainty. Amid rising coronavirus infections in major economies, the safe US Dollar has continued a recovery rebound that started last week.

Markets were also concerned by weaker than hoped US data last week.

Shifts in market sentiment will continue to drive the US Dollar in the coming sessions, amid a lack of key US ecostats on the way. If coronavirus situations show signs of improvement, safe haven demand could soften

Canadian Dollar News: Risk-Aversion Helping GBP/CAD Avoid Losses

As investors look for safer currencies today, both the Pound and Canadian Dollar have been hit by risk-aversion. This has meant the Canadian Dollar is unable to benefit from the Pound’s weakness.

Prices of oil, Canada’s biggest export, remain strong. This is potentially helping CAD to avoid further losses.

Canadian manufacturing and sales stats could cause some Canadian Dollar movement tomorrow. The biggest focus CAD this week will be Wednesday’s Bank of Canada (BoC) policy decision however.

Australian Dollar News: GBP/AUD Movement Narrow as Both Currencies Weaken

Both the Pound and Australian Dollar are being weakened by today’s market movement into safer havens. The Australian Dollar avoided bigger losses thanks to some strong Chinese data.

Some significant Australian data will be published this week. Tomorrow’s home sales stats may be underwhelming but key job market and retail figures are due towards the end of the week.

Upcoming Data

Tuesday, 19th January

07:00    German Inflation Rate

10:00    Eurozone Construction Output

10:00    German and Eurozone ZEW Economic Sentiment

13:30    Canadian Manufacturing Sales

13:30    Canadian Wholesale Sales