Published: 16 Nov at 5 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, France, Germany, Ireland,
The Pound (GBP) suffered today as the UK enters a crucial week in which UK-EU trade talks are expected to intensify.
Nevertheless, with Prime Minister Boris Johnson both in self-isolation and maintaining a hard-line position on Brexit, GBP investors are remaining cautious.
â€™s Foreign Minister, Simon Coveney, was also pessimistic about a post-Brexit trade agreement between the two sides, saying:
â€˜I think the British government understand only too well what is required for a deal this week, the real question is whether the political appetite is there to do it.â€™
As a result, UK markets are feeling dovish as Brexit uncertainty bodes badly for the British economy in the months ahead.
The Euro (EUR) also struggled today as safe-haven demand slipped on new hopes of a Covid-19 vaccine. Pharmaceutical giant Moderna announced that vaccine trials had proven nearly 95% effective.
Consequently, demand for the safe-haven single currency has slipped amidst growing uncertainty over Europeâ€™s own coronavirus situation.
However, there are growing hopes that France
could have succeeded the peak of the coronavirus pandemic.
US Dollar (USD)
The US Dollar (USD) struggled last week owing to a downturn in US Consumer Confidence data.
US consumer morale dipped owing to concerns over Americaâ€™s Covid-19 crisis and political uncertainties ahead of the US elections.
Today saw the â€˜Greenbackâ€™ sufferer from improved risk-sentiment owing to positive news about a possible breakthrough Covid-19 vaccine.
trade tensions are back in focus.
Ilya Spivak, an analyst at APAC, explains:
â€˜US-China trade war escalation through the Trump administrationâ€™s â€˜lame duckâ€™ period before team Biden takes over in late January might be another headwind. The outgoing President moved to ban US investment in Chinese military-linked firms. Beijing predictably bristled out loud. Another round of tit-for-tat countermeasures may follow. In all, this means that the Greenback may yet reclaim a haven bid.â€™
Canadian Dollar (CAD)
The Canadian Dollar (CAD) rose following the release of todayâ€™s Canadian Manufacturing Sales data for September, which rose to 1.5%.
Nevertheless, concerns for Canada
â€™s economy have returned following a spike in the nationâ€™s Covid-19 cases.
Canadian Prime Minister Justin Trudeau warned:
â€˜Reducing your contacts, reducing your gatherings are going to be most important. And what we do in the coming days and weeks will determine what we get to do at Christmas.â€™
Australian Dollar (AUD)
The Australian Dollar (AUD) rose today on renewed demand for the risk-sensitive â€˜Aussieâ€™.
Following Modernaâ€™s successfully vaccine trials, Australian markets are now more optimistic of an economic recovery in the months ahead.
The New Zealand Dollar (NZD) has similarly benefited from demand for riskier assets today.
We could see the â€˜Kiwiâ€™ head higher this week if Covid-19 vaccine news continues to buoy hopes of a global economic recovery.
As of Monday, 16th November 2020, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.1147, GBP USD exchange rate was 1.3219, GBP AUD exchange rate was 1.8059, GBP NZD exchange rate was 1.9139, GBP CAD exchange rate was 1.7285, and GBP CNY exchange rate was 8.7331.