pound receeding

Euro Supported in Upbeat Trade after Last Week’s Volatility

Pound News: Sterling Under Pressure despite Brexit Hopes

The Pound was mixed against its rivals today, despite Boris Johnson and European Commission President Ursula von der Leyen agreeing to extend the Brexit negotiations for another month at the weekend.

The UK-EU talks extension boosted hopes that the two sides will come to an agreement before the end of the transition phase at the end of the year. However, today’s publication of the UK service PMI limited Pound gains as, despite a stronger-than-expected reading, it highlighted the growing number of job cuts in the UK.

UK construction PMI data, due tomorrow, is unlikely to be too influential for the Pound. Instead, GBP investors will likely remain focused on Brexit developments for now.

Euro News: Eurozone Data Helps Euro to Edge Higher

At the end of last week, the Euro was hit by the Eurozone inflation rate falling to -0.3%, surging safe-haven demand, and strength in its rival the US Dollar (USD). However, the Euro was able to rebound today thanks to stronger than expected Eurozone PMI and retail sales data.

Eurozone construction PMI data and speeches from European Central Bank (ECB) President Christine Lagarde could influence the Euro tomorrow, as well as US Dollar movement.

US Dollar News: USD Slips Back on Upbeat Trade on Hopes for US President’s Health

The US Dollar made gains at the end of last week as US President Donald Trump confirmed he had tested positive for coronavirus, boosting safe-haven USD.

However, hopes that Trump is handling the illness well had markets a little calmer this morning, so the US Dollar slipped from its best levels.

US trade data and job opening figures will be published tomorrow, which could drive US Dollar movement but Donald Trump’s health and the coronavirus relief stimulus package will likely remain the main focus for USD investors.

Canadian Dollar News: CAD Steadies as Markets Calm from Last Week

Hopes that US President Donald Trump’s health was improving helped the Canadian Dollar to steady today. The news made investors more willing to take risks, so risk and commodity outlooks improved and boosted CAD.

Canada’s August trade data could cause some CAD movement tomorrow if it surprises. Overall though, markets will remain focused on the US coronavirus situation.

Australian Dollar News: Investors Slightly More Willing to Take Risks, RBA in Focus

Hopes for US President Donald Trump to recover from his coronavirus illness, as well as Australia’s own improving coronavirus outlook, helped the Australian Dollar to firm today.

However, AUD gains are likely to be limited as investors are closely watching for tomorrow’s Reserve Bank of Australia (RBA) policy decision, as well as ongoing developments with the US coronavirus situation.

Upcoming Data

Monday, 5th October

22:30     Australian Construction PMI

Tuesday, 6th October

01:30    Australian Trade Balance

04:30    Reserve Bank of Australia Policy Decision

08:30    Eurozone Construction PMI

09:30    UK Construction PMI

13:30    Canadian Trade Balance

13:30    US Trade Balance