Pound News: Sterling Unappealing as Britain’s Coronavirus Crisis Deepens
The Pound was one of the currencies to be hit harder by the market’s coronavirus panic yesterday. With markets becoming more anxious about the huge hit Britain’s economy will take from the pandemic, investors sold the Pound against most major rivals.
If today’s UK PMI projections show a smaller than expected coronavirus impact, the Pound could strengthen. Pound investors will also carefully watch and digest the latest UK fiscal stimulus measures.
Euro News: EUR Demand Strengthened as Hopes Rise for EU Stimulus
The Euro benefitted from weakness in rival currencies yesterday, thanks to signs that the EU was ramping up fiscal stimulus to combat the coronavirus pandemic. The Euro gained against both the Pound and its rival the US Dollar.
Eurozone PMI projections will be published today. Surprising implications for the outbreak could influence EUR movement, but EU fiscal stimulus measures are likely to remain the focus for the Euro.
US Dollar News: USD Strength Limited as Fed Ramps Up the Stimulus
The Federal Reserve attempted another positive shock on markets yesterday. It announced massive plans to buy government-backed debt in a move so shocking that it briefly boosted market sentiment. This weighed on the US Dollar, but the Pound’s weakness meant GBP/USD still fell.
The US Dollar’s movement may be volatile until US Congress is able to reach a deal on coronavirus aid. Attempts to form a rescue package are struggling to find bipartisan support, which is limiting USD appeal.
Canadian Dollar News: Fed Stimulus and Oil Prices Support CAD
Market demand for the Canadian Dollar was a little stronger yesterday. GBP/CAD slipped as CAD benefitted from the Federal Reserve’s stimulus news. Oil prices also recovered slightly on the news, which helped the oil-correlated Canadian Dollar.
Canada is set to have a parliamentary debate and vote on coronavirus aid today. This, as well as potential developments in oil prices and the oil price war, will drive the Canadian Dollar’s movement.
Australian Dollar News: AUD Attempts Rebound amid Federal Reserve Stimulus
As the US Dollar was knocked slightly lower by the latest Federal Reserve stimulus measures, risk and trade-correlated currencies like the Australian Dollar benefitted. This left the Australian Dollar advancing yesterday.
However, the AUD rebound is unlikely to persist. Continued coronavirus fears will keep the risk-correlated currency unappealing overall.
Tuesday, 24th March
08:15 French PMI Projections
08:30 German PMI Projections
09:00 Eurozone PMI Projections
09:30 UK PMI Projections
13:45 US PMI Projections
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