Published: 2 Jul at 5 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada,
Pound Sterling (GBP)
The Pound held its ground today after advancing yesterday. Speculation that there could be Brexit developments in the coming weeks, as well as higher market appeal for taking risks, is helping the Pound to hold its advances.
Britain’s final June services and composite PMIs will be published tomorrow. Even if the data beats forecasts though, Sterling’s appeal could be limited by coronavirus jitters looming over the outlook.
The Euro continues to see fairly resilient movement this week overall. Eurozone data continued to beat forecasts today, and hopes that the EU will continue to work toward pandemic stimulus is also supporting the Euro.
The Eurozone’s final June services and composite PMI data, due tomorrow, could further boost Euro support if it beats forecasts. Further developments in EU coronavirus plans could also cause movement.
US Dollar (USD)
The US Dollar tumbled against many major currencies today. As a safe haven currency, the US Dollar is less appealing as data from major economies indicates surprising resilience to the coronavirus pandemic. This included today’s surprisingly strong US Non-Farm Payroll report.
US markets will be closed tomorrow to observe the Independence Day holiday. However, the safe haven US Dollar could continue to see pressure if optimism over economic resilience persists.
Australian Dollar (AUD)
As investors reacted to today’s US Non-Farm Payroll report beating forecasts, investors became more willing to take risks again. This led to a jump in demand for the Australian Dollar, which was already resilient on Australian data and coronavirus hopes.
’s final June services and composite PMIs will be published tomorrow. If Australian data continues to beat forecasts, it will only bolster the Australian Dollar’s appeal and help it to hold its ground.
The New Zealand Dollar has been one of this week’s best-performing major currencies. As risk-sentiment rose today, the New Zealand Dollar advanced and pushed GBP/NZD back towards lows.
All of this week’s notable New Zealand data has been published already. The risk-correlated currency is likely to keep seeing influence from global coronavirus and trade developments.
Canadian Dollar (CAD)
After poor performance for much of the week on tumbling oil prices, the Canadian Dollar saw slightly stronger performance today. Stronger than expected Canadian trade data boosted hopes of a domestic rebound from the coronavirus pandemic, and higher risk-sentiment also helped.
No notable Canadian data is due tomorrow. Canadian Dollar investors will keep an eye on coronavirus and oil developments through the end of the week.
As of Thursday, 2nd July 2020, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.1094, GBP USD exchange rate was 1.2471, GBP AUD exchange rate was 1.8008, GBP NZD exchange rate was 1.915, and GBP CAD exchange rate was 1.6913.