Foremost Currency Group

Make the most of your currency

Talk to our friendly team:+44 (0)1442 892060

Pound Rallies on Brexit Day as Coronavirus Concerns Throttle Riskier Assets

Pound News: Brexit Uncertainty Could Return to Sterling Outlook

At the end of last week, the Pound continued to benefit from optimism around the Bank of England’s (BoE) most recent policy decision. However, some analysts warned that as Brexit takes place, new market focus on Brexit negotiations could weigh on the Pound outlook.

Britain’s January manufacturing PMI results could cause the Pound to weaken if they disappoint today. This would weaken UK economic rebound hopes.

 

Euro News: EUR Resilient despite Fresh Eurozone Slowdown Concerns

The Euro was one of Friday’s better performing major currencies. This was despite the day’s lower than expected French and Eurozone growth rate data, which kept investors anxious about the possibility that the Eurozone economy could still fall into recession over the next year.

Investors will continue to keep a close watch on the Eurozone’s economic outlook this week. Today’s German manufacturing PMIs, as well as other German factory data later in the week, could be particularly influential.

 

US Dollar News: USD Investors Look Ahead to Key US Data

The US Dollar struggled to hold its ground towards the end of last week. While coronavirus jitters boosted safe haven demand, US PCE price index data disappointed investors slightly.

Slews of key US data will be published this week and could influence Federal Reserve speculation if it surprises. ISM’s US manufacturing PMI, due this afternoon, could knock the US Dollar if it falls short of forecasts.

 

Canadian Dollar News: Canadian Growth Fails to Boost CAD Performance

Canada’s November growth rate report beat market expectations on Friday. Despite this though, persisting concerns about a coronavirus outbreak and its potential impact on commodities and global growth kept the Canadian Dollar falling.

If Canadian data keeps beating forecasts, CAD is more likely to find stronger support. Canadian Dollar investors are currently anticipating Canada’s January manufacturing PMI from Markit, due later today.

 

Australian Dollar News: ‘Aussie’ Remains a Coronavirus Jitters Proxy

Even as Reserve Bank of Australia (RBA) interest rate cut bets lighten, the Australian Dollar saw broadly bearish movement last week. The ‘Aussie’ is being used as a proxy for market sentiment over coronavirus concerns, which meant continued losses on Friday.

Today’s Australian building stats are likely to be overshadowed by anticipation for tomorrow’s RBA policy decision. The bank is not expected to make any changes to monetary policy, but the bank’s tone on global growth concerns will be watched carefully.

 

Upcoming Data

 

Monday, 3rd February

00:30    Australian Building Permits

08:50    French Manufacturing PMI

08:55    German Manufacturing PMI

09:00    Eurozone Manufacturing PMI

09:30    UK Manufacturing PMI

14:30    Canadian Manufacturing PMI

15:00    US Manufacturing PMI

 

© Copyright 2013 to 2020 | Foremost Currency Group Ltd | All rights reserved