Despite starting the month above the 1.30 level against the US Dollar, Sterling fell last week to levels of around 1.18. Similarly, with the Euro, the month began in the range of 1.16, but last week had been residing closer to 1.09. However, on Friday, the Pound rose sharply, following heavy declines in previous sessions, as optimism over a package to help protect the workers of Britain increased, alongside hopes of more testing. The Pound has started the week softening against the US Dollar and Euro. Data out this week includes inflation and retail sales. Fitch ratings agency is also scheduled to review the UK's sovereign debt, and the Bank of England is due to make it's next interest rate decision, despite already making two unscheduled rate cuts twice this month.
Last week, the Euro declined against the US Dollar, with further softness a possibility should the effects of the coronavirus continue to dampen the economic outlook. Eurozone Consumer Confidence data is expected to come in at -13 today, the lowest level since the European debt crisis. This week, data from Germany and the Eurozone will be in the spotlight, potentially able to give some insight into how the coronavirus has impacted services and manufacturing so far. Additionally, the European Central Bank is scheduled to post its Economic Bulletin, and inflation data is also due out.
The Dollar has been trading higher in recent sessions as investors head for safe-haven assets amid the coronavirus outbreak. Against the Pound, the Dollar's been trading at its highest levels since 1985. However, the Buck softened at the close of the week as action by governments and central banks around the world boosted some investor sentiment. In the week ahead there's some highly influential data due out, but with some of it relating to before the coronavirus took hold, it may be less relevant and therefore have a lesser effect on the USD. Data out this week includes inflation and growth figures, sentiment, and goods orders.
The Australian Dollar rebounded off a 17-year low last week after the Reserve Bank of Australia announced a stimulus package and rate cut. The Kiwi Dollar also resurfaced from 11-year lows against the US Dollar as the Buck declined after California went into lockdown. This week, RBA Deputy Governor Guy Debelle is due to give a speech in Melbourne, while New Zealand will reveal it's latest trade balance stats. Australian service and manufacturing sector data is also due out.
On Friday, the Canadian Dollar was able to strengthen by its most in four years against the US Dollar as risk sentiment improved amid a backdrop of rising oil prices. However, the Loonie noted around 3.0% losses against the US Dollar for the week. It's an incredibly quiet week for Canadian data, leaving the Loonie to move on geopolitical developments, risk sentiment, and oil price fluctuations.