Pound News: Sterling Attempts Rebound Following Week of Losses
The Pound attempted a modest recovery today, following losses on dire UK economic data last week. However, amid Britain’s gloomy coronavirus and Brexit outlooks, Sterling’s recovery attempts may be limited.
Britain’s latest borrowing data will be published tomorrow. Borrowing would have to show a notable optimistic shift for it to have much of an impact on the gloomy Pound outlook, however.
Euro News: EU Recovery Fund Hopes Keep Shared Currency Buoyant
The latest EU Summit, which began on Friday, has been extended beyond the weekend amid hopes among officials that major progress can be made on the focal issue of the coronavirus recovery fund. This is keeping the Euro as one of the market’s more appealing major currencies.
Tomorrow will be a quiet day for Eurozone data, but Euro investors will likely remain focused on developments in talks over the EU recovery fund.
US Dollar News: Risk-on Mood Continues while US Coronavirus Outlook Worsening
Amid hopes that there is progress being made on a coronavirus vaccine, as well as hopes for US and Eurozone stimulus, an upbeat market mood continues. Meanwhile, the worsening coronavirus situation in the US is only further weighing on the US Dollar outlook.
Developments in the US coronavirus situation will likely continue to limit the US Dollar’s movement. However, the US Dollar may experience further movement as investors await potential US fiscal support as current measures are set to finish at the end of July.
Canadian Dollar News: Oil Prices Limiting CAD Appeal
The Pound was able to sustain some gains against the Canadian Dollar this morning. Prices of oil, Canada’s biggest export, have been sliding since OPEC+ oil producers pulled back slightly on production cuts, which left CAD weaker than other trade-correlated currencies.
Some of this week’s most influential Canadian data will be published tomorrow. If Canadian retail statistics from May disappoint investors, the Canadian Dollar could see further weakness.
Australian Dollar News: ‘Aussie’ Tumbles on Fears of Sydney Lockdown
The Australian State of Victoria has recently seen fresh coronavirus lockdown, which has had a negative impact on the Australian Dollar outlook. Today, fears of a ‘second wave’ of infections in the city of Sydney are further dampening AUD.
Tomorrow could be influential for the Australian Dollar outlook though, depending on the tone the Reserve Bank of Australia (RBA) and Governor Philip Lowe have in comments expected during the Asian session.
Tuesday, 21st July
02:30 Reserve Bank of Australia (RBA) Meeting Minutes
03:30 RBA Governor Lowe Speech
07:00 UK Public Sector Net Borrowing
13:30 Canadian Retail Sales
13:30 US Chicago Fed National Activity Index