Pound News: Bank of England Hopes Fail to Trigger Sustained Pound Recovery
The Pound found limited support this morning as Bank of England (BoE) Governor Andrew Bailey indicated that the bank could begin to reign in UK quantitative easing (QE) before interest rates are hiked. However, investors remain anxious about the bank’s handling of the coronavirus pandemic, limiting Sterling’s benefit from the news.
Tomorrow will see the publication of the week’s most influential UK data, UK Manufacturing and Services PMIs, which could boost hopes for UK economic resilience and the Pound if they impress.
Euro News: EU Fiscal Policy Optimism Keeping the Euro Buoyed
Even though the EU’s latest pandemic fiscal policy plans were delayed slightly, forthcoming attitudes from major nations like France and Germany are keeping investors optimistic. This is helping the Euro to hold its ground against major rivals.
Eurozone PMI projections for this month will be published tomorrow. If the data beats forecasts, investors will remain optimistic about the Eurozone’s pandemic situation and the Euro could remain resilient.
US Dollar News: Safe-Haven Demand Persists and Supports USD
The US Dollar benefited as markets soured and investors bought the safe haven currency last week. Despite concerns over how the US government is handling the coronavirus pandemic, the US Dollar is still seeing limited benefit from safe haven demand today.
US PMI projections from Markit will be published tomorrow which could support US Dollar sentiment. That aside, if global coronavirus jitters worsen the US Dollar is likely to benefit from rising safe haven demand.
Canadian Dollar News: Expectation for Further Oil Recovery Keeps CAD Sturdy
The Canadian Dollar held its ground against the Pound today. Despite a lack of fresh support for the Canadian Dollar and mixed risk-sentiment, hopes for oil market strength supported the currency.
This week’s Canadian economic calendar is fairly quiet. However, if oil prices see another jump over the coming days, as analysts speculate, the Canadian Dollar could hold its ground.
Australian Dollar News: ‘Aussie’ Remains King Even as Coronavirus Fears Rise
Rising fears of a ‘second wave’ of coronavirus infections have not stopped the Australian Dollar from remaining one of the strongest major currencies. Comments from the Reserve Bank of Australia (RBA) that AUD is not overvalued have only boosted the currency’s appeal.
If Australia’s PMI projections beat forecasts tomorrow, the Australian Dollar’s appeal will only be further extended. On the other hand, poor data and worsening coronavirus jitters could cause the ‘Aussie’ to shed some recent strength.
Tuesday, 23rd June
00:00 Australian PMI Projections
08:15 French PMI Projections
08:30 German PMI Projections
09:00 Eurozone PMI Projections
09:30 UK PMI Projections
14:45 US Markit PMI Projections
15:00 US New Home Sales