Published: 8 Sep at 5 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, Germany,
Pound Sterling (GBP)
The Pound continued to plummet across the board today, registering significant losses against major rivals. No-deal Brexit fears intensified, and signs of discord in the UK government only further weighed on the Pound’s appeal.
Brexit developments will remain the focus for the Pound in the coming sessions. Positive developments in UK-EU negotiations would be a surprise, but could also lead to a big rebound in the Pound.
The Euro saw slightly stronger demand today. The shared currency was able to climb against riskier rivals despite European Central Bank (ECB) anxiety. This is because the Euro is seen is relatively safe, but some stronger than expected German export stats helped as well.
Investors are likely to spend tomorrow awaiting Thursday’s European Central Bank (ECB) policy decision, amid a lack of notable Eurozone data due for publication.
US Dollar (USD)
The US Dollar continued its rebound rally today, its appeal bolstered further by the day’s rise in safe haven demand. The worsening global coronavirus ‘second wave’, as well as Brexit uncertainties and US-China
trade tensions, all made investors more eager to buy safe havens.
This week remains a relatively quiet one for US data. Tomorrow will see the publication of US JOLTs job opening data, but other than this the US Dollar will be driven mostly by rivals and safe haven demand.
Australian Dollar (AUD)
Despite the Australian Dollar’s weaker performance over the past week, it was one of the stronger risk-correlated currencies today. Even amid fresh US-China trade tensions, the Australian Dollar is holding its ground today. It has found some support in stronger than expected business confidence data.
Australian consumer confidence data from Westpac will follow tomorrow. If this data beats forecasts as well, the Australian Dollar may have an easier time holding its ground in the coming sessions.
The New Zealand Dollar has been relatively weak this week. As bets of more dovishness from the Reserve Bank of New Zealand (RBNZ) rise, the New Zealand Dollar has been one of the least appealing major currencies.
The New Zealand Dollar could find stronger support if tomorrow’s New Zealand manufacturing report beats forecasts. However, poor data or a worsening New Zealand coronavirus situation could weigh heavily on the New Zealand Dollar.
Canadian Dollar (CAD)
The Canadian Dollar’s appeal was limited today. Investors were hesitant to buy the currency too much as prices of oil, Canada
’s biggest export, continued to weaken. Investors are also hesitant to move too much on CAD ahead of tomorrow’s anticipated Bank of Canada (BoC) policy decision.
If the BoC surprises investors in tomorrow’s policy decision, it could lead to a big shift in Canadian Dollar movement. Traders will also remain focused on oil prices and coronavirus developments.
As of Tuesday, 8th September 2020, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.1017, GBP USD exchange rate was 1.296, GBP AUD exchange rate was 1.799, GBP NZD exchange rate was 1.9619, GBP CAD exchange rate was 1.7167, and GBP CNY exchange rate was 8.8729.