The pound initially opened last week’s session on stable footing as GBP investors welcomed Scotland’s lifting of its remaining coronavirus restrictions.
The pound, meanwhile, fluctuated overnight as PM Boris Johnson was admitted to intensive care.
Sterling is putting on a mixed performance this morning, with GBP/EUR edging up to €1.1346 and GBP/USD surging 0.8% to $1.2328. However, GBP/AUD has slipped to AU$1.9937 while GBP/CAD and GBP/NZD remain flat at CA$1.7287 and NZ$2.0539 respectively.
Looking ahead, the coronavirus pandemic will remain the main catalyst for market movement.
What’s been happening?The pound came under a little pressure at the start of the week as the UK’s Gfk consumer confidence measure showed a huge decline in sentiment.
Sterling later extended those losses after PM Boris Johnson was admitted into intensive care due to persistent coronavirus symptoms.
Foreign Secretary Raab is deputising for the PM, but investors remain concerned about the uncertainty the situation creates.
The US dollar, meanwhile, was driven lower against its rivals as risk appetite returned to the currency market.
What’s coming up?Covid-19 is going to remain in focus for investors once again this week and continue driving movement in the currency market.
If the number of Covid-19 deaths across the globe continue to slow over the course of the week the current demand for higher-risk currencies could continue.
In Europe investors will be focusing on the Eurogroup meeting of finance ministers to decide on a European response to the economic impact of the coronavirus.
Signs of discord could send the euro lower.
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)