Pound (GBP) Dented by Coronavirus Concerns
The Pound (GBP) fell yesterday amid talk of delaying the ending of restrictions in response to the rise in cases of the Delta coronavirus variant, with GBP/EUR exchange rates sliding.
Sterling found no support in the final manufacturing PMI for the UK, which printed slightly below expectations.
Without any notable data releases today, coronavirus news will remain in the spotlight for GBP investors.
Euro (EUR) Buoyed by Strong Data Releases
The Euro (EUR) received a modest boost during yesterday’s session after some key Eurozone data releases printed above expectation.
The bloc’s final manufacturing PMI for May was revised higher than previous estimates, while the inflation figures showed continued growth in the Eurozone.
Turning to today, Germany’s latest retail sales figures showed a sharp contraction in April, with sales well below expectations. This could dampen demand for the single currency as the day goes on.
US Dollar (USD) Dampened in Upbeat Market Mood
The US Dollar (USD) was relatively rangebound during Tuesday’s session, with a risk-on appetite among investors weighing on the safe-haven currency.
One factor in this upbeat market mood was the latest ISM manufacturing PMI, which showed that US factory activity grew more than expected last month.
With no notable data releases coming out today, some upcoming speeches from Federal Reserve policymakers could impact USD exchange rates.
Canadian Dollar (CAD) Spikes on Soaring Oil Prices
The Canadian Dollar (CAD) spiked yesterday, as a surge in oil prices propelled the commodity-linked currency upwards.
This upside was short-lived, however, as the ‘Loonie’ soon dropped to its pre-spike range against many of its peers.
Australian Dollar (AUD) Slides as Victoria Lockdown Extended
The Australian Dollar (AUD) dropped in overnight trade with the announcement that the localised lockdown in Victoria state will be extended.
This overshadowed Australia’s latest GDP release revealing that growth in the first quarter of 2021 was stronger than expected, which may have otherwise strengthened AUD.
New Zealand Dollar (NZD) Weakens amid Slight Souring of Market Sentiment
The New Zealand Dollar (NZD) also slipped overnight, after an uptick in USD demand and a slight softening of market mood dragged on the ‘Kiwi’.