Pound Sterling

New Coronavirus Strain and Infection Surges Send Markets into Fresh Panic

Pound News: Brexit and Coronavirus Crises Deepen

The Pound plunged across the board today. A lack of a Brexit deal with less than 10 days until the end of the transition period was only part of this.

Reports of a new, faster-spreading coronavirus strain in England has led to stricter lockdowns and fears of months more restrictions for Britain’s already-battered economy.

UK growth data tomorrow is likely to be overshadowed by developments around the coronavirus pandemic and Brexit.

Euro News: Coronavirus Fears Weigh on Euro’s Broad Appeal

The Euro has been one of the more appealing currencies lately, benefitting from weakness in rivals like the Pound and US Dollar.

However, as coronavirus infections surge across Europe, investors are buying the Euro’s safe haven rival the US Dollar. This is limiting Euro demand, though it is still climbing against a plunging Pound.

German consumer confidence data is due tomorrow. The Euro’s primary cause of movement will likely continue to be rival strength however.

US Dollar News: Safe Haven Demand Returns, Boosting USD

The safe haven US Dollar has been falling for weeks on coronavirus vaccine hopes. However, amid concerns over a new coronavirus strain, as well as no-deal Brexit fears, investors are looking for safer investments again. This is causing the US Dollar to rebound from recent lows.

Tomorrow will see the publication of US growth rate stats. With the coronavirus pandemic still dominating global headlines though, the US data may be overshadowed somewhat.

Canadian Dollar News: New Coronavirus Fears Hit Trade-Sentiment

The Canadian Dollar was unable to recover as much against Sterling as other major currencies today. This is because rising coronavirus fears have hit the risk and trade-correlated Canadian Dollar.

Prices of oil, Canada’s biggest export, have also fallen on this coronavirus news. This is only further weighing on CAD.

Canadian wage stats are due tomorrow. Coronavirus developments and oil price news are likely to dominate Canadian Dollar movement though.

Australian Dollar News: Revived Coronavirus Surges Weighing on Risk-Sentiment

The risky trade-correlated Australian Dollar’s recent rally appears to be running out of steam. Investors are selling the ‘Aussie’ as the global coronavirus situation worsens again.

Australia’s city of Sydney has also seen a fresh surge of cases. This has caused new restrictions in the city and worsened Australian economic concerns.

This week’s most notable Australian data will be retail sales stats due tomorrow. The data is unlikely to be highly influential though as coronavirus fears return to focus.

Upcoming Data

Tuesday, 22nd December

00:30    Australian Retail Sales

07:00    German Consumer Confidence

07:00    UK Growth Rate

07:00    UK Business Confidence

13:30    Canadian Weekly Earnings

13:30    US Growth Rate

15:00    US Existing Home Sales

15:00    US Richmond Fed Manufacturing Index