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Pound Flounders on Shifting Risk Sentiment

Pound News: Increasingly Risky Sterling Flounders amid Coronavirus Uncertainty

Market concerns over Britain’s coronavirus and Brexit situation continue to cast a gloomy shadow over the Pound’s outlook. Despite the UK government’s announcement to ease lockdown measures and reopen more of the economy on 4 July, Sterling continues to shift with risk appetite.

Unless the CBI’s distributive trades survey released tomorrow shows surprisingly strong sales activity in May, the Pound will likely continue to be driven by coronavirus developments in the coming sessions.


Euro News: ‘Second Wave’ Fears Dampen Euro’s Appeal

The Euro was hit today by rising concerns over a ‘second wave’ of coronavirus infections and the threat of a new US-EU trade war. As investors looked for safe havens, the Euro dipped as demand increased for rival safe-haven currencies like the US Dollar and Swiss Franc (CHF).

However, as the Euro has not fallen far from its recent highs, it is unlikely to climb much higher even if tomorrow’s German ifo business confidence index data impresses.


US Dollar News: Safe-Haven Demand Could Boost USD

The US Dollar’s safe-haven appeal has recently been dented due to concerns over the US economy. However, market sentiment soured today on a jump in Covid-19 cases and a potential trade war between the US-EU, supporting the safe-haven US Dollar.

Most of this week’s most influential US data will be published tomorrow. If US growth and trade data beats forecasts it could boost hopes of US economic resilience and the US Dollar’s appeal as a safe-haven currency.


Canadian Dollar News: Trade Uncertainties Leave ‘Loonie’ in the Dust

The Canadian Dollar’s fortunes have taken a hit in recent sessions. Concerns over US-Canada trade relations are flaring up once more, and oil prices are also tumbling due to fresh fears of a ‘second wave’ of coronavirus infections. These factors have weighed heavily on the trade-correlated Canadian Dollar.

Canadian wage data will be published tomorrow. However, any positive figures are likely to be offset by trade and oil jitters.


Australian Dollar News: AUD Resilience Persists despite Market Risk-Aversion

Investors were more hesitant to keep taking risks today, as fears of a ‘second wave’ of coronavirus infections rose. Despite this, optimism over Australia’s own outlook is keeping the Australian Dollar from being hit too hard by the risk-off mood.

This week’s Australian economic data has all been published. As a result, AUD movement will likely continue to be driven by coronavirus news and shifts in risk-sentiment instead.


Upcoming Data


Thursday, 25th June

07:00    German Consumer Confidence

11:00    UK CBI Distributive Trades

13:30    US Growth Rate

13:30    US Durable Goods Orders

13:30    US Wholesale Inventories

13:30    US Jobless Claims


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