Pound News: Sterling Weakens on Indian Variant Concerns
The Pound has struggled for much of the day due to concerns over the Indian variant of coronavirus as more cases are found across the UK. Investors are becoming increasingly concerned that the variant could derail the UK’s lockdown easing plans.
A quieter economic week for the UK could see Sterling open to further losses against its counterparts in the coming days.
Euro News: Euro Supported by Sterling Weakness and US Dollar Weakness
The Euro has been supported for much of the day despite a lack of notable data from the Eurozone. A weakening Pound and mixed US Dollar has allowed the Euro to head higher against many of its major rivals throughout the day. The Euro has found further support in the Eurozone’s recovery from coronavirus, which has seen cases drop by 60% in the last month.
The latest Ifo Business Climate and GDP growth rate data from Germany could cause the single currency to weaken however, as it’s expected that the German economy contracted 1.7% during Q1.
US Dollar News: US Dollar Weakens on Risk-On Trade
The US Dollar has been mixed against many of its major rivals for most of the day following an upbeat market mood and pullback in US Treasury yields. Investors await the latest Bank of Chicago’s National Activity Index for April which could provide fresh support for the ‘Greenback.’
A quieter week for the US Dollar will see investors look towards the global market mood in the coming days.
Canadian Dollar News: CAD Mixed as Oil Prices Rise
The Canadian Dollar has ticked lower today despite oil prices having risen following a ‘snag’ in US-Iran nuclear pact talks.
Australian Dollar News: ‘Aussie’ Supported by Upbeat Market Mood
The Australian Dollar has been higher today as a rising risk-on mood and a pullback in the US Dollar supports AUD.
Investors will be keeping an eye on the market mood in the coming days, where a resurgence in the US Dollar could see the ‘Aussie’ suffer.
Tuesday, 25th May
07:00 DE GDP Growth Rate QoQ (Q1)
09:00 DE Ifo Business Climate (May)
13:30 CA Manufacturing Sales MoM Prel (Apr)
Wednesday, 26th May
02:30 AU Construction Work Done QoQ (Q1)
15:00 US Fed Quarles Testimony