Foreign Exchange Update 24th August 2020

Foreign Exchange Update 24th August 2020

EUR/USD was seen edging slightly higher, trading at a spot rate of 1.1796 at the time of writing, heading towards a rebound amid improved market sentiment. The pair ended its eighth consecutive week of gains on Friday, following IHS Markit PMI surveys which were unexpectedly downbeat. Fresh news of a coronavirus cure and vaccine have been softening a new wave of infections in Europe.

 The Pound-to-Dollar exchange rate is trading at 1.3083, remaining stable as markets await further news on the crucial job furlough scheme. The Sterling ranked third in performance against other major currencies at the end of last week, as another inconclusive round of Brexit talks weighed heavily.

 GBP/EUR is trading at 1.1092, after closing on the downside last Friday on the heels of a negative Brexit update, but following a relatively robust week. The pair is currently enjoying nearby technical support and could advance to higher levels against the dollar once again later this week, although the threat of Fed Chair Jerome Powell’s Jackson Hole speech looms.

 Elsewhere, the Australian dollar performed poorly during last Friday’s closing session, facing a rebound in U.S. exchange rates. The commodity-backed currency is now trading at 1.8306.

 The Canadian dollar extended its recovery on Friday, helping maintain pressure on the Brexit-tainted GBP/CAD, with the pair currently trading at 1.7730. The loonie was boosted after Canadian retail sales were reported rising 23.7% in June to C$53.0 billion, surpassing economist forecasts.

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