Pound News: Sterling Holding Ground as Markets Await Coronavirus Restrictions
The Pound is steady today in anticipation of the UK government’s expected new coronavirus tier restriction system later, but the outlook remains filled with uncertainties.
Reaction to coronavirus developments, as well as potential Brexit developments later in the week will be the focus for the Pound in coming sessions.
Meanwhile, the UK’s employment data released tomorrow may drive some movement in GBP exchange rates, but Brexit and coronavirus will likely continue dominating sentiment.
Euro News: Coronavirus Outlook and Rival Strength Continues Driving Euro
The Euro is holding its ground today after making gains at the end of last week on US Dollar weakness due to the pairing’s negative correlation.
This has offset the Eurozone’s coronavirus outlook continuing to deteriorate as cases in Europe continue to spike and countries introduce new restrictions.
Tomorrow will see the publication of German inflation rate data and German and Eurozone confidence stats from ZEW. Confirmation Germany stayed in deflation and any drop in optimism over the Eurozone and German economies could weigh on EUR.
At the same time, movements in rival currencies like the Pound and US Dollar will remain influential as well.
US Dollar News: Safe-Haven USD Demand Boosted by Weekend’s News
The safe-haven US Dollar is experiencing a rise in demand today as doubts grew again over a US fiscal stimulus package being agreed.
In addition, the risk-off mood increased on news that China was reported to interfere with the value of the Chinese Yuan (CNY), boosting safe-haven demand.
Market risk appetite will likely continue driving US Dollar demand through the week as uncertainty grows as the US election draws nearer. Meanwhile, US inflation rate data due for publication tomorrow may have limited effect on USD exchange rates.
Canadian Dollar News: CAD Strengthens on Market News
Last week’s rise in US fiscal stimulus hopes led to a rise in prices of oil, Canada’s biggest export. This, as well as a strengthening US Dollar and strong Canadian employment rate figures last week, have been supporting the Canadian Dollar.
If oil prices remain strong, the Canadian Dollar is likely to remain resilient as well, while market sentiment is most likely to influence CAD exchange rates this week amid a lack of notable Canadian data releases.
Australian Dollar News: Investors Avoid Risks after Weekend’s Developments
The Australian Dollar weakened slightly today. Market sentiment soured as hopes for US fiscal stimulus faded and China was perceived as intervening in the value of the Chinese Yuan (CNY), which left investors less eager to buy the risk-sensitive Australian Dollar.
Westpac consumer confidence insight, a speech by Reserve Bank of Australia Governor Lowe, and employment data will all likely drive movement in AUD exchange rates, until then shifts in market and trade sentiment will be key.
Tuesday, 13th October
07:00 German inflation Rate
07:00 UK Job Market Report
10:00 German and Eurozone ZEW Economic Sentiment
13:30 US Inflation Rate
15:00 US Economic Optimism