Euro Australian Dollar Exchange Rate Weighed by Eurozone’s Coronavirus Uncertainty
A combination of Eurozone coronavirus concerns and Reserve Bank of Australia (RBA) anticipation are weighing on the Euro Australian Dollar (EUR/AUD) exchange rate today. Any surprises in Tuesday’s key news could cause a shift in movement however.
Last week’s risk-averse movement helped EUR/AUD climb from the level of 1.5780 to 1.5880 throughout the week, a gain of a cent.
However, EUR/AUD has been unable to hold the multi-week high of 1.59 seen last week and this morning. Uncertainty over the Eurozone outlook continues to weigh on the pair, and at the time of writing EUR/AUD is trending in the region of 1.5854.
The Pound to US Dollar (GBP/USD) exchange rate stumbled ahead of the weekend as doubts over the prospect of a UK-EU trade deal picked up once again.
With increasingly little time left before the end of the Brexit transition period markets saw less reason for optimism over the possibility of an eleventh hour deal.
Although the two sides continued discussions this was not enough to keep the Pound from giving back some of its bullish gains made over the course of the week.
As the risk of the UK and EU trading on World Trade Organisation (WTO) terms remains on the table there appeared little room for Pound demand at this stage.