Currencies Jittery as Markets Become More Anxious about Brexit and Coronavirus Outlooks

Published: 26 Nov at 4 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, France, Germany,

Pound Sterling (GBP)

The Pound slipped back from its best levels today, as markets once again grew anxious about the fate of the Brexit process. UK and EU officials have shown mixed signals on how negotiations are going, which is causing no-deal Brexit fears to flare up again.

No notable UK data will be published tomorrow. This will leave Pound investors awaiting developments on UK-EU Brexit negotiations and Britain’s coronavirus situation.





Euro (EUR)

Demand for the Euro was mixed today. The shared currency was unable to capitalise on weakness in rivals the Pound and the US Dollar, due to disappointment in the latest French and German confidence stats.

Much of the week’s noteworthy Eurozone stats will be published tomorrow. If French growth or inflation stats impress, they could support the Euro following weaker performance today.





US Dollar (USD)

Optimism around coronavirus vaccine news and economic recovery kept pressure on safe haven currencies like the US Dollar today. Still, the Pound did slip from its highs against the US Dollar as some safe haven demand lingers, due to concerns of a gloomy winter ahead for major economies.

US markets are closed to observe the Thanksgiving public holiday. The US Dollar will be influenced more by shifts in market sentiment until key US data is published next week.





Australian Dollar (AUD)

The Australian Dollar continues to be one of the market’s most appealing major currencies. The Pound to Australian Dollar exchange rate is trending near its lowest levels all week as investors more willing to take risks are buying the ‘Aussie’.

The Australian Dollar could remain appealing so long as markets remain optimistic about recovery from the coronavirus pandemic. AUD movement will be more focused on key Australian data next week though.





New Zealand Dollar (NZD)

The New Zealand Dollar has had an even more bullish week than the Australian Dollar. Not only has it been boosted by market sentiment, but speculation that the Reserve Bank of New Zealand (RBNZ) could begin to target New Zealand house prices as well.

New Zealand consumer confidence data is due tomorrow. The New Zealand Dollar’s movement is likely to remain focused on shifts in market risk and trade sentiment however.





Canadian Dollar (CAD)

Strong prices in oil, Canada’s biggest export, continues to support gains in the Canadian Dollar today. The Canadian Dollar remained strong against the Pound, despite today’s Canadian weekly earnings results falling short of expectations.

Canadian budget balance data tomorrow is unlikely to be particularly influential for Canadian Dollar movement. Instead, market sentiment and oil prices will drive CAD appeal.
As of Thursday, 26th November 2020, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.121, GBP USD exchange rate was 1.3354, GBP AUD exchange rate was 1.8149, GBP NZD exchange rate was 1.9067, and GBP CAD exchange rate was 1.7387.

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