Pound News: Sterling Fails to Hold as Investors Avoid Risks
The Pound remained one of the market’s least appealing major currencies as investors moved to avoid taking risks. As Sterling is seen as increasingly risky, it remained low against other major currencies while safer investments rose.
Looking ahead, Sterling may lack the support to advance much unless there are optimistic developments in Britain’s coronavirus or Brexit outlooks.
Euro News: Euro Finally Slides as Market Sentiment Boosts Rivals
The Euro slipped today as trade tensions between the EU and US escalated over the US threat to place tariffs on $3.1 billion of European goods. This prompted an angry response from Brussels that argued the tariffs would be ‘very damaging’.
French consumer confidence will be published tomorrow. Overall, the Eurozone outlook is already optimistic though, so the Euro will more likely be driven by strength in rivals like the US Dollar.
US Dollar News: Investors Return to USD as Safe Haven Demand Soars
A surge of coronavirus cases in the US have heightened market fears that a ‘second wave’ is inevitable. As ‘second wave’ fears start to overwhelm optimism over recovery, investors have been drawn to the safe-haven US Dollar.
US Personal Consumption Expenditure (PCE) data will be published tomorrow which could influence market speculation over US price pressure. However higher safe haven demand could also drive the US Dollar higher.
Canadian Dollar News: Oil Prices and Fitch Downgrade Keep CAD Weak
The Canadian Dollar lost ground this week. Prices of oil, Canada’s biggest export, are being hit by global coronavirus fears. On top of this, credit rating agency Fitch downgraded Canada’s credit rating due to the deterioration of the nation’s public finances.
Oil prices and shifts in global risk sentiment are likely to remain key drivers in the Canadian Dollar tomorrow.
Australian Dollar News: AUD Still Resilient Despite Risk-Aversion
Investors were hesitant to buy the Pound against the risk-correlated Australian Dollar today. The ‘Aussie’ is outperforming risky rivals due to market optimism over Australia’s economic outlook.
No notable Australian data will be published tomorrow. However, if market risk-sentiment continues to fade, the Australian Dollar may come under fresh pressure.
Friday, 26th June
07:45 French Consumer Confidence
13:30 US Personal Consumption Expenditure (PCE) Inflation Data
15:00 US Michigan Consumer Sentiment