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Sterling Falls as PM’s Coronavirus Plan Faces Criticism

Pound News: PM Boris Johnson Announces Easing of UK’s Lockdown

Sterling remained under pressure today as investors were cautious about Prime Minister Boris Johnson’s coronavirus lockdown easing plan. Meanwhile, markets received a boost as several countries made moves to re-open their economies allowing risk sentiment to recover.

However, the Pound came under further pressure as Boris Johnson released the 50-page document detailing the government’s guidance on the easing of the coronavirus lockdown.

Looking ahead, Sterling could make some gains if markets become reassured by the PM’s plans to ease the lockdown. ING Strategists noted:

‘Despite facing much criticism for muddying the waters with his speech to the nation last night, Prime Minister Boris Johnson’s efforts to restart the economy may be welcomed by the Pound.’

Pound Euro News: Germany Sees Spike in Coronavirus Infections

The single currency was able to make gains against the Pound today as investors worried the global economic recovery may be slower than expected.

The Euro was also able to make gains despite reports revealing new infections in the bloc’s largest economy has increased as Germany began to ease coronavirus lockdown restrictions. This caused investors to grow increasingly concerned that re-opening economies in countries will lead to increased rate of infections.

Looking ahead, the single currency could edge higher against the Pound if risk appetite continues to suffer losses and traders flock back to typical safe-haven currencies.

Pound US Dollar News: Second Wave of Coronavirus Infections Buoys USD

The Pound slumped against the US Dollar on Monday as traders began to move back to the safety of the ‘Greenback’.

Investors adjusted risk expectations after warnings of a second wave of coronavirus infections as both South Korea and Wuhan reported new infections. Added to this, rising US Treasury yields also sent traders flocking to the Dollar.

Looking ahead to Tuesday, the US Dollar could edge higher if risk sentiment suffers further losses following the release of April’s US inflation rate. If April’s inflation rate disappoints it could dampen risk sentiment further and send the ‘Greenback’ higher.

Pound Canadian Dollar News: New Wave of Infections Sends Oil Prices Lower

The Pound Canadian Dollar exchange rate remained flat on Monday after oil prices slumped following a new wave of coronavirus infections and concerns over a persistent glut that has been offset by huge supply cuts from OPEC+.

According to UBS Analyst, Giovanni Staunovo:

‘Concern over a second wave, the nearly 50% year on year drop in Indian oil demand in April and likely further oil inventory builds this week are likely weighing on oil prices at the start of the week.’

Looking ahead, the oil-sensitive ‘Loonie’ will remain under pressure if oil prices continue to slide.

Pound Australian Dollar News: Signs of Second Wave in Wuhan

The Pound remained largely flat against the Australian Dollar on Monday as risk sentiment remained under pressure.

Risk appetite was hit after signs of a possible second wave of infections in Wuhan, the epicentre of the coronavirus crisis in China. Reports today showed that the city reported its first cluster of infections since the lockdown was lifted just a month ago.

Looking ahead, the ‘Aussie’ could suffer some losses following the release of NAB’s business confidence data. If confidence plummets in April, it will send AUD lower.

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