Pound News: GBP Edges Higher, UK is Expected to Ease Lockdown Restrictions in July
The Pound (GBP) rose against some of the major currencies today ahead of Prime Minister Boris Johnson’s expected announcement of support for the unlocking of England’s lockdown restrictions from July 19.
As a result, Sterling has risen on renewed optimism in the outlook for the British economy. The easing of lockdown measures later this month will likely further speed up the nation’s economic recovery.
Today also saw the latest UK services PMI for June revised upward from 61.7 to 62.4.
With the outlook for the British economy continuing to improve, we could see the Pound continue to head higher against the major currencies – the Euro and the US Dollar – throughout this week.
Euro News: EUR Falls Following Dovish ECB Commentary
The Euro continued to fall today following Friday’s dovish comments from Christine Lagarde, the European Central Bank’s (ECB) President. Lagarde repeated her defence of the ECB’s accommodative approach to monetary policy, saying that the recovery of the Eurozone’s economy ‘remains fragile’.
In Eurozone economic data, today saw the release of the latest Eurozone June composite PMI. The figure beat forecasts rising from may’s 59.2 to 59.5, restoring confidence in the outlook for the bloc’s economic recovery, despite Lagarde’s comments.
Could rising concerns about the outlook for the Eurozone’s economy this year further weigh on the single currency this week?
US Dollar News: ‘Greenback’ Suffers as Risk Sentiment Improves
Today saw the US Dollar’s gains limited by improving risk sentiment. As Covid-19 infections rise throughout Europe, the UK and China, investors are however confident in widespread vaccination efforts.
Consequently, demand for the safe-haven ‘Greenback’ has fallen in recent weeks, with key factors such as hospitalisations and deaths from the virus showing signs of falling thanks to coronavirus vaccination programmes throughout Europe, China, and the United States.
Last week also saw the latest US nonfarm payrolls rise unexpectedly to 850,000 instead of the forecast 700,000.
Confidence in the US economy continues to grow, however, with recent data showing encouraging signs of recovery for the world’s largest economy.
Improving risk-sentiment, however, is likely to further limit demand for the safe-haven ‘Greenback’ throughout the course of this week.
Canadian Dollar News: CAD Dips, Oil Prices Stabilises
The Canadian Dollar fell today despite WTI crude prices remaining at around $75 a barrel. Last week saw oil prices edge higher but now they appear to be stabilising.
Any further signs of rising oil demand, however, would see oil prices rise along with the commodity-linked ‘Loonie’.
Looking ahead, Canadian Dollar traders will be looking ahead to Wednesday’s release of the Ivey purchasing managers index for June.
If this shows signs of improvement in the Canadian economy, then we could see the ‘Loonie’ head higher.
Australian Dollar News: AUD Suffers as Australia Announces Further Lockdown Restrictions
The Australian Dollar (AUD) fell today due to a new outbreak of Covid-19 infections throughout Australia, including Sydney and the state of Victoria.
New restrictions in key areas of Australia has driven down confidence in the outlook for Australia’s economy.
01:30 AU Retail Sales (May)
08:00 EU Services PMI (Jun)
08:30 UK Services PMI (Jun)