Pound News: GBP Flat amidst Lull in Data
The Pound (GBP) is rangebound at the start of this week’s session as a lack of notable UK data releases leaves Sterling without any strong directional bias.
GBP investors continue to look to domestic coronavirus developments for fresh impetus, but a modest rise in new cases continues to limit the appeal of the Pound.
Looking ahead, the only UK release of note this week will be the UK’s latest GDP reading, which could catapult the Pound higher if the UK economy expanded even faster than expected in the second quarter.
Euro News: EUR Subdued as Investor Sentiment Weakens
The Euro (EUR) is struggling for direction this afternoon, following the publication of the Eurozone’s latest economic optimism index.
Research group Sentix reported that its index of Eurozone investor sentiment, dropped to 22.2 this month, its worst reading since May, amidst fresh fears that some countries will need to reimpose lockdown measures later this year.
Should this deterioration of morale be reflected in the latest German ZEW economic sentiment index tomorrow, then the Euro could come under some notable selling pressure.
US Dollar News: USD Mixed amid Fluctuating Treasury Yields
The US Dollar (USD) pushed higher through the first half of today, with the appeal of the ‘Greenback’ being bolstered by a strong pick-up in US Treasury yields as well as tailwinds from Friday’s stronger-than-expected payroll report.
However, the US Dollar has subsequently relinquished the majority of these gains as a pullback in yields sapped USD demand.
Speeches by Federal Reserve policymakers may provide fresh impetus for the US Dollar overnight, with the US Dollar likely to rally if they indicate the Fed is open to tapering its monetary policy in the coming months.
Canadian Dollar News: ‘Loonie’ Accelerates in Spite of Falling Oil Prices
The Canadian Dollar trended high against the majority of its peers today, with the commodity-linked ‘Loonie’ appearing to be unfazed by a sharp slump in oil prices at the start of the session.
Australian Dollar News: Muted amidst Coronavirus Jitters
The Australian Dollar (AUD) initially stumbled through the start of this week’s trading session, as coronavirus concerns, both local and global, dented the appeal of the risk-sensitive currency.
The ‘Aussie’ was later able to shed these losses, but was unable to translate this rebound into any meaningful gains on the day.
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