Pound News: Sterling Lacks Direction on Indian Variant Concerns
The Pound has been mixed for much of the day as concerns over the Indian variant of coronavirus and rising infections continue to drag down Sterling sentiment.
In addition, a testimony by former government aide Dominic Cummings has drawn criticism for how the UK government responded to the pandemic, potentially stoking political uncertainty.
A quieter UK economic data calendar in the second half of the week will see investors continue to focus on any further coronavirus developments to drive movement in GBP exchange rates.
Euro News: Euro Weakens on ECB Commentary
The Euro has weakened today following dovish commentary from the European Central Bank (ECB) regarding the Eurozone’s economic recovery from coronavirus. Adding losses for the single currency has been a slight recovery in USD, with the negative correlation in the pairing weighing on EUR.
The latest GfK Consumer Confidence data from Germany released tomorrow could cause EUR to strengthen as the reading is expected to rise to its highest level in 6 months.
US Dollar News: USD Stems Losses
The US Dollar had stumbled earlier today as an upbeat market mood and dovish commentary from the Federal Reserve limited the ‘Greenback’ after Chicago Fed President Charles Evans yesterday dismissed concerns about the rise of US inflation.
However, USD exchange rates have stopped sliding and recovered some ground on safe-haven demand as equity markets dipped.
Looking ahead, high-impact US data releases could support the US Dollar as durable goods orders are forecast to rise, and initial jobless claims expected to continue falling.
Canadian Dollar News: CAD Slips as Oil Price Recovery Slows
The Canadian Dollar has weakened today as the recent rise in oil prices slowed and weighed on the oil-sensitive ‘Loonie’, although WTI is holding above $65.
Australian Dollar News: ‘Aussie’ Supported by Upbeat Market Mood
The Australian Dollar has been trending higher today as a rising risk-on mood earlier in the session added wider support to the ‘Aussie.’
Investors will be keeping an eye on the global market mood in the coming days, any pullback in the US Dollar could see the ‘Aussie’ extend its gains.
Thursday 27th May
07:00 DE GfK Consumer Confidence (Jun)
13:30 US GDP Growth Rate QoQ (Q1)
13:30 US Initial Jobless Claims (22/May)
Friday 28th May
10:00 EA Consumer Confidence Final (May)
15:00 US Michigan Inflation Expectations Final (May)