Global tensions impacting major currencies

Due to the latest trade war news, the U.S dollar saw gains whereas the euro weakened as a result of weak eurozone PMIs. The EUR/USD pair is trading close to 1.0960 on Monday, descending from the new-month highs seen last week. 

The weakening eurozone PMI and the strong dollar would heavily affect the Euro, which jumped 1.39% last week on the heels of a European Central Bank (ECB) meeting on Thursday.

Sino-U.S. tensions are prompting a rebound in the safe-haven Dollar, as the Pound-to-Dollar exchange rate is trading below 1.25 at a spot rate of 1.2462. 

Moreover, the GBP/EUR pair is seen trading at 1.1373 and could potentially face further losses in the coming week after trading on the downside last Friday, leaving the pair vulnerable on the charts. 

Investor risk appetite, the Bank of England (BoE) and how markets react to leaked information regarding the UK government’s lockdown exit plan are all factors that will affect the British pound’s direction.

On the other hand, Pound-to-Canadian Dollar is trading at 1.7605, nearing the peak of its 2020 range last week, although the two currencies remain amongst the most vulnerable to instability in the stock market. 

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