The pound initially opened last week’s session on stable footing as GBP investors welcomed Scotland’s lifting of its remaining coronavirus restrictions.
Unsurprisingly this was connected to the resurgence of coronavirus cases in many parts of the world and the fears that this could undermine the global economic recovery.
Australia’s own coronavirus woes did little to improve the optics, as the continued rise in domestic cases now sees 50% of the population back in lockdown.
Further undermining the ‘Aussie’ was Australia’s latest retail sales release, which reported a much sharper-than-expected drop-off in sales growth last month.
Despite all this, the Australian Dollar was able to claw back some of these losses in the latter half of the week amidst an improvement in risk appetite.
Looking ahead, it's likely the Australian dollar could face additional headwinds this week if market sentiment deteriorates again, although a strong domestic inflation reading in the second quarter could lend some support to AUD exchange rates on Wednesday.
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)