Pound News: Sterling Holding Ground on UK Coronavirus Hopes
Last week saw the Pound surge across the board, as the currency capitalised on a plummeting US Dollar. Markets are reassessing their view of the UK government’s handling of the coronavirus pandemic to be a little more positive, which is also helping Sterling.
No notable UK data is due for publication tomorrow, but Wednesday’s UK services PMI data has potential to offer Sterling big support if it beats forecasts.
Euro News: Eurozone PMIs Continue to Support Shared Currency
Today’s Eurozone manufacturing PMIs beat forecasts in many key prints, helping to boost market optimism about the resilience of the Eurozone economy. However, the shared currency has been unable to recover last week’s losses against Sterling.
Aside from French budget data, tomorrow’s Eurozone economic calendar is quieter. Eurozone services and composite PMI data, as well as EU coronavirus developments, are more likely to drive the Euro.
US Dollar News: USD Respite after Worst Month in a Decade
A combination of coronavirus and US political fears made the US Dollar plummet last week, and July marked the currency’s worst performance in a decade. The US Dollar has been rebounding from its cheap levels today, but the currency’s outlook remains filled with uncertainties.
US factory orders and economic optimism stats will be published tomorrow. These could bolster the US Dollar’s appeal and help its rally to continue if they beat expectations.
Canadian Dollar News: CAD Recovers with USD
As the US Dollar rebounded from its worst levels today, the Canadian Dollar saw some rebound as well. The Canadian Dollar is benefitting from its US Dollar correlation, as well as modestly rising prices of oil, Canada’s biggest export.
Canada’s key July manufacturing PMI report from Markit will be published tomorrow. If Canada’s manufacturing sector has been performing better than expected, the Canadian Dollar’s support could strengthen.
Australian Dollar News: Strong Australian Data Fails to Offset Coronavirus and RBA Jitters
Australia’s coronavirus crisis continues to worsen, spooking markets and keeping pressure on the recently strong Australian Dollar. While this morning’s Australian PMI data beat forecasts, it was not enough to boost market demand for the ‘Aussie’.
What’s more, analysts are anxious about tomorrow morning’s upcoming Reserve Bank of Australia (RBA) policy decision. If the RBA issues warnings about the strength of the Australian Dollar, the ‘Aussie’ could be knocked even lower.
Tuesday, 4th August
02:30 Australian Trade Balance
02:30 Australian Retail Sales
05:30 RBA Policy Decision
14:30 Canadian Manufacturing PMI
15:00 US Factory Orders
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