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Pound Sterling Slips While Markets Remain Hopeful Despite Surging Coronavirus Cases

Pound News: Sterling Tumbles as it Falls Back from Last Week’s Highs

The Pound strengthened against many major rivals last week on the back of UK fiscal stimulus news. However, as the fiscal stimulus was largely unsurprising it was not enough to lead to lasting Pound strength, so Sterling is slipping from highs today.

Much of this week’s influential UK data will be published tomorrow. This includes growth, production, and trade balance results while coronavirus and Brexit uncertainties will drive movement as well.

 

Euro News: Economic Recovery Hopes Boosting Shared Currency

Investors have been more eager to buy the Euro so far this week. As hopes of a coronavirus vaccine rise and economies reopen, the Euro continues to find support in recovery hopes. This is despite uncertainty over the EU Recovery Fund as markets are generally optimistic.

Tomorrow will see the publication of Eurozone economic sentiment data from ZEW and German inflation, both of which will provide indicators of Europe’s economic recovery.

However, the main focus this week for Euro investors will be the European Central Bank (ECB) with its July policy decision and the EU leader’s summit, where the EU’s €750bn coronavirus recovery fund will top of the agenda.

 

US Dollar News: Safe-Haven Demand Too Weak to Support USD

The US Dollar remains under pressure today. While surging coronavirus cases in the US are keeping the US Dollar under pressure, market recovery hopes are keeping safe-haven demand limited as well.

US inflation rate data from June will be published tomorrow. If US inflation comes in lower than expected, the US economic outlook will worsen, and the US Dollar could come under fresh pressure.

 

Canadian Dollar News: Oil Price Concerns Limit CAD Appeal

The Canadian Dollar is struggling to capitalise on today’s rise in risk-sentiment. This is because fears over surging coronavirus cases as well as rumours of softer production cuts are weighing on prices of oil, Canada’s biggest export.

The Canadian Dollar’s movement may be steadier in the coming session though as investors anticipate Wednesday’s Bank of Canada (BoC) policy decision.

 

Australian Dollar News: Hopes for Vaccine Help AUD Rebound

Investors were hesitant to buy the Australian Dollar last week due to a surge of coronavirus cases in the Australian State of Victoria.

However, as hopes for a coronavirus vaccine are slightly improving this week, the Australian Dollar is benefitting from a rise in risk-sentiment.

Australian business confidence data is due tomorrow, potentially supporting the Australian Dollar if the figures impress. It’s likely, however, that coronavirus developments and market sentiment will drive AUD.

 

Upcoming Data

 

Tuesday, 14th July

02:30    Australian NAB Business Confidence

07:00    German Inflation Rate

07:00    UK Trade Balance

07:00    UK Growth Rate

07:00    UK Manufacturing and Industrial Production

10:00    Eurozone Industrial Production

10:00    ZEW Eurozone and German Economic Sentiment

13:30    US Inflation Rate

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