Pound News: GBP Rises as PM Says it’s ‘Looking Good’ for Lifting Lockdown in July
The Pound (GBP) performed strongly against its peers today after Prime Minister Boris Johnson said that it was ‘looking good’ for the final lifting of lockdown restrictions on 19 July.
As a result, this has uplifted confidence in the UK economy, which is steadily recovering from the effects of the Covid-19 pandemic, despite rising infection rates throughout England.
UK businesses in the tourism and hospitality sector also benefited from the easing of lockdown restrictions in May.
Jeavon Lolay, the head of economics and market insight for commercial banking at Lloyds Bank, was also optimistic, saying that the UK economy is ‘now on a much sounder footing’ despite the four-week delay to easing restrictions this month.
Looking ahead, Pound investors will monitor the flash UK services and manufacturing PMI data for June, which will be released on Wednesday.
Euro News: EUR Rises Despite French Political Uncertainties
The Euro (EUR) opened this week on steady footing, despite turmoil in France after President Macron performed worse-than-expected in exit polls, with results now being in favour of the Republicans.
Today also saw the European Central Bank’s (ECB) President Christine Lagarde testify before the European Parliament, in which she warned against prematurely tightening monetary policy.
In this week’s session, Tuesday will see the release of the latest flash Eurozone consumer confidence data for June. The Euro could rise this week if the outlook for the Eurozone’s economy continues to improve.
US Dollar News: USD Dips amidst Profit Taking
The US Dollar (USD) dipped today despite risk-off market mood and a hawkish Federal Reserve earlier last week.
This pullback in the ‘Greenback’ appeared to be a result of some profit taking, amidst suggestions the currency entered ‘overbought’ territory last week.
Looking forward, USD investors will be awaiting the Fed Chairman Jerome Powell’s testimony before Congress on Tuesday.
US data will also be in focus this week, with the latest US PMI figures for June being a key mover for the US Dollar.
Canadian Dollar News: CAD Muted Despite Rising Oil Prices
The Canadian Dollar’s gains have been muted today despite rising WTI crude oil prices at the start of the session. Instead, Canadian markets have become cautious, awaiting further insight into the US Federal Reserve’s next move.
In Canadian economic data, investors will await Wednesday’s publication of the latest retail sales data for April. Any signs of Canada’s retail sector suffering would drag down the Canadian Dollar exchange rate.
Australian Dollar News: AUD Sinks on Disappointing Australian Retail Data
The Australian Dollar (AUD) was subdued this morning following the latest flash Australian retail sales data for May, which fell below expectations at 0.1%, although the subsequent pullback in the US Dollar allowed the currency to rebound during European trade.
01:30 AUD Retail Sales (May)
14:15 EUR ECB President Lagarde Speech
19:00 USD US Fed Williams Speech