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Pound and Australian Dollar Boosted by Coronavirus Vaccine Optimism

Pound News: Vaccination and Lockdown Easing Hopes Keep Pound Buoyant

The Pound remained one of the market’s more appealing major currencies today. News that the government will soon look into the time of easing lockdown is keeping the Pound appealing as the nation’s vaccination programme continues at a healthy pace.

No notable UK data is due for publication tomorrow, which will likely leave coronavirus developments in focus for the Pound until later in the week.

Euro News: Euro Caught Between Pound Strength and US Dollar Weakness

The Euro continues to weaken against a strong Pound today, amid no real change in the Eurozone’s coronavirus pandemic outlook, pushing the GBP/EUR to its best levels since May 2020.

However, the Euro is avoiding bigger losses due to weakness in its biggest rival, the US Dollar.

Tomorrow will see the publication of key Eurozone GDP figures from Q4 2020, employment data, and German economic sentiment surveys. If tomorrow’s major Eurozone data surprises investors it could cause movement in the Euro outlook.

US Dollar News: Persisting USD Weakness Pushes GBP/USD to Multi-Year Highs

The US Dollar’s downtrend has resumed following a brief recovery attempt at the end of last week. While investors are looking for a more solid improvement in US data before making more bullish movement, a prevailing risk-on market mood is weighing on safe-haven demand for USD.

GBP/USD has hit its best levels since May 2018, and EUR/USD is hovering near its best February levels.

US manufacturing stats from Empire State will be published tomorrow, but the US Dollar may not get the bullish support it needs until retail sales figures come in on Wednesday.

Canadian Dollar News: Oil Highs Fail to Boost Canadian Dollar Versus Strong Pound

The Pound to Canadian Dollar exchange rate touched on its best levels all month this morning despite prices of oil, Canada’s biggest export, touching their best levels in 13 months.

The Canadian Dollar’s appeal is being weighed by mixed sentiment over US and Canadian economic outlooks.

Canadian housing starts and foreign securities purchases data is due tomorrow, but is unlikely to be too influential for the Canadian Dollar outlook. The CAD focus will remain on oil prices and rival strength for now.

Australian Dollar News: ‘Aussie’ Resilient as Vaccines to be Rolled Out in Australia

News that Australia would receive its first coronavirus vaccine doses this week is keeping the Australian Dollar appealing today. Vaccines are set to begin rolling out to citizens before the end of the month.

The Reserve Bank of Australia’s latest meeting minutes will be published tomorrow. If the bank shows signs of becoming more dovish, the Australian Dollar’s strength could be offset somewhat.

Upcoming Data

Tuesday, 16th February

00:30    RBA Meeting Minutes

06:30    French Unemployment Rate

10:00    ZEW German and Eurozone Economic Sentiment

10:00    Eurozone Employment Change

10:00    Eurozone Growth Rate

13:15    Canadian Housing Starts

13:30    US Empire Manufacturing Index