Foreign Exchange Update 1st June 2020
EUR/USD was seen strengthening last week’s gains, hitting 1.115 – the highest level in three months. The pair could be boosted by ongoing tensions in the United States, an overall bullish sentiment in global markets and the European Central Bank (ECB) likely announcing further support for the eurozone economy.
The Pound-to-Dollar exchange rate was trading close to the 1.2400 mark. The Sterling was seen recovering lost ground against a broadly weaker greenback – a recovery that could be extended into the coming days. Investors are closely eyeing UK and U.S. PMI data, along with much-awaited Brexit talks on Tuesday.
The GBP/EUR pair is trading at a spot rate of 1.1114 and could gather further support on Monday. Last week, the British currency was seen yielding ground to the Euro for three days, resulting in a close that was 0.37% lower and a third consecutive week of losses. However, the pair may be heading towards a tentative rebound during Monday’s trading session, as the British government attempts a reopening of the economy after months of lockdown.
Elsewhere, the Pound-to-Canadian Dollar is trading at a spot rate of 1.6993 and is set to receive a bid early this week. However, Brexit tensions may weigh heavily on the pair in the coming days, leading to fresh losses for the Sterling. The Pound has already ceded ground against the Loonie for four consecutive weeks, resulting in -4% level losses for the month of May.