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Safe Haven Demand on Coronavirus Panic Leaves USD Surging Across the Board

 

Pound News: Sterling Battered to Multi-Decade Lows Against USD on Coronavirus Fear

Yesterday was another heavily bearish session for the Pound. Investors sold the British currency as concerns worsened about how Britain’s economy would cope with the coronavirus pandemic. Sterling saw steep losses against major rivals like the Euro and US Dollar.

While the UK government’s recent fiscal stimulus plans have been fairly well-received, investors are awaiting further fiscal stimulus action before buying the British currency from its lows. UK government action remains the focus for Pound investors.

 

Euro News: EUR Appeal Limited by Surging USD and Coronavirus Anxiety

The Euro’s strong run appears to have come to an end for now. It was able to hold near its best levels versus the Pound yesterday, but concerns over the coronavirus pandemic in Europe as well as US Dollar strength left EUR/USD tumbling.

Today’s German business confidence data could offer the Euro some support if it impresses. Overall though, Euro investors are anticipating further news and signals on possible Eurozone stimulus measures.

 

US Dollar News: GBP/USD Slumps to Worst Levels since 1985

Investors continue to pile into the safety of the US Dollar. Yesterday saw the US Dollar surge against the Pound and even the relatively appealing Euro. The downside pressure of Federal Reserve easing speculation has softened, and the US Dollar is also being supported by speculation of further fiscal stimulus from the US government.

US Dollar investors will be keeping a close eye on the US government’s stance and actions on the coronavirus pandemic. The currency will likely continue to benefit from safe haven demand.

 

Canadian Dollar News: Oil Prices Continue to Plunge

Despite Pound weakness, GBP/CAD is holding its ground as the Canadian Dollar continues to slump. Prices of oil, Canada’s biggest export, fell to their lowest levels since 2003. The dire oil situation is keeping CAD tumbling.

No notable Canadian data is due today. As a result, CAD investors will react to developments in oil prices and stimulus measures from Canadian officials.

 

Australian Dollar News: GBP/AUD Near Post-Referendum Best Levels

The Australian Dollar remains one of the currencies hardest hit by coronavirus panic. Investors continued to sell AUD yesterday as they awaited further stimulus news from Australian officials.

Reaction to the latest Reserve Bank of Australia (RBA) policy announcement is likely to drive AUD demand today. The Australian Dollar will continue to be driven by shifts in risk-sentiment as well.

 

Upcoming Data

 

Thursday, 19th March

00:30    Australian Job Market Report

03:30    Reserve Bank of Australia Monetary Policy Announcement

09:00    German Ifo Business Confidence

10:00    Eurozone Construction Output

12:30    Canadian New Housing Prices

 

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