Major Currencies Overview
First up, here’s a rundown of how the major pairs performed in the past week:
The scrilla kept up its winning streak as it took advantage of fears of a dollar funding crisis and persistent risk-off flows from COVID-19 concerns.
A handful of mid-tier reports are due from the U.S. economy this week, but traders might still pay closer attention to overall sentiment and stimulus efforts being announced. Read more.
The Loonie had a mixed run as it managed to outpace its comdoll rivals and sterling while losing ground to lower-yielding currencies.
There are no major economic reports due from Canada this week, so traders could keep the spotlight on crude oil price action and risk sentiment. Read more.
EUR & CHF
Both lower-yielding European currencies continued to rake in risk-off flows, even as some major economies announced emergency stimulus measures.
The euro zone has its flash PMI readings coming up and declines are eyed, so the shared currency might return some of its recent winnings. Read more.
Sterling took a heavy beating in the previous week as the BOE announced another emergency cut while the U.K. government still lagged in dealing with the COVID-19 outbreak.
The BOE is scheduled to make their actual policy statement this week, but no changes are eyed. Keep a lookout for flash PMI readings and U.K. inflation figures as well! Read more.
The safe-haven yen shrugged off positive vibes from global stimulus efforts to address the coronavirus outbreak and continued to pocket risk-off gains.
The same might be the case this week as there are no major reports due from Japan and traders remain wary that governments are doing enough to address the crisis. Read more.
The Aussie was the biggest loser for the week, even as the RBA put the pedal to the metal with its easing efforts.
This week’s catalysts might not be enough to bring any relief as flash PMI readings and data from China could simply highlight the repercussions of the COVID-19 outbreak. Read more.
The Kiwi chalked up another week in the red as it trailed behind the Aussie in its risk-off moves, despite efforts by the RBNZ to rally up the economy.
New Zealand’s trade balance is due this week, but traders might keep their focus on coronavirus-related developments and their impact on overall sentiment. Read more.