US Dollar

USD Strengthens as ‘Third Wave’ Coronavirus Fears Fuel Risk-Off Trade

Pound News: Unexpected Slowdown in UK Inflation Limits GBP Strength

The Pound’s movement has been more bearish so far this week, amid concerns that UK-EU tensions could interfere with economic recovery from the coronavirus pandemic.

Today’s UK inflation rate data showed price pressures unexpectedly weakened in February, which weighed on the Pound as it doused hopes of a more hawkish Bank of England (BoE) any time soon.

Tomorrow’s session is relatively quiet for UK data, although another notable UK data release, retail sales figures for February, is likely to influence the Pound on Friday.

Euro News: Rise in Eurozone PMIs Leads to Euro Bounce

Investors are buying the Euro back from some of its recent lowest levels today, in reaction to surprisingly strong Eurozone PMI data.

The German services print unexpectedly indicated growth at 50.8, and manufacturing saw a hugely impressive figure of 66.6, well above the expected 60.8. In addition, the PMIs indicated private business activity across the Eurozone as whole returned to growth in March.

The Euro could continue its strong streak if upcoming data, including German and Eurozone consumer and business confidence figures, continue to impress.

US Dollar News: Risk-Aversion Pushes GBP/USD to Monthly Lows

Concerns over a possible ‘third wave’ of coronavirus, tightening lockdown restrictions, and US-China tensions are making investors look to safe-haven currencies, in turn strengthening the US Dollar.

Tomorrow will see the publication of the week’s most influential US data, in the form of Q4 growth rate results. If US growth was better than expected at the end of last year, the US Dollar’s strength could solidify further.

Canadian Dollar News: Weaker CAD Still Climbs Against Sterling

The Canadian Dollar’s appeal has been softer over the past week, as fresh coronavirus jitters weigh on commodity and trade outlooks. Despite this though, the Canadian Dollar is still climbing against the weaker Pound this week, with GBP/CAD hitting 2-month-lows.

No notable Canadian data is due for publication until next week. This leaves CAD to be driven mostly by shifts in market sentiment and oil prices for the time being.

Australian Dollar News: Stronger PMIs Support ‘Aussie’ amid Risk-Off Movement

A shock in Turkish Lira (TRY) movement combined with rising ‘third wave’ lockdown and restriction fears have left investors looking away from risk and trade-correlated currencies like the Australian Dollar this week.

However, today’s Australian services and manufacturing PMIs beat forecasts to indicate strong private sector growth in March, which has helped AUD exchange rates make gains today.

Upcoming Data

Thursday 25th March

07:00    German Consumer Confidence

07:45    French Business Confidence

11:00    French Jobless Data

11:00    UK CBI Distributive Trades

12:30    US Jobless Claims

12:30    US Growth Rate

15:00    US Kansas Fed Manufacturing