We wanted to let you know that WorldFirst is making improvements to our email capability and, as we update our technology, the daily update email will be unavailable from Monday 22nd June to 2nd July. You can continue to read our daily commentary via the website by accessing our blog. Updates will also be available via LinkedIn and Twitter.
Risk-on currencies such as AUD and NZD, which have enjoyed gains over the last month, have seen a short, sharp fall through the night on Wednesday after White House trade adviser Peter Navarro stated that the trade deal with China is “over”. After reopening their economies post-COVID, the pair enjoyed large gains across the board. Trade with China, which was also increasing back towards normal levels, had played a large part in this. The statement from the White House was enough to give the market jitters and see the currencies lose over 0.5% each. Saving the day, however, President Donald Trump was quick to tweet “The China Trade Deal is fully intact” resulting in the pair return to their previous levels, but traders now are asking questions as to the relationship between the world’s two largest economies and how this will have an impact moving forward.
In stark contrast to yesterday, data will take the forefront of markets today as European giants, the UK and the US, release their PMI figures for June. French sentiment has shocked markets this morning, showing confidence returning to manufacturing and services. GBP traders will be hoping for a similar level of confidence coming from the UK, as the economy starts to reopen after lockdown restrictions. The data readings are done on a comparable month by month basis, and, with tight restrictions through May, the figure is likely to increase and could well give GBP a shot in the arm to regain some of the recent losses.
Have a great day,
Author: Jack Nicholls, Relationship Manager
Whilst every effort is made to ensure the information published here is accurate, you should confirm the latest exchange rates with WorldFirst prior to making a decision. The information published is general in nature only and does not consider your personal objectives, financial situation or particular needs. Full disclaimer available here.