The New Zealand Dollar was jolted by a shock announcement by the country's Prime Minister that a three day snap lockdown would be enforced from midnight Tuesday in response to a single Covid-19 case, a move that will mean the RBNZ is likely to leave interest rates unchanged at its mid-week decision.
The British Pound's outlook is brightening on signs a third wave of Covid-19 infections in the UK is ending according to analysts, with one saying they are recommending investors buy GBP/EUR this week as a result.
The British Pound is in the process of recovering ground lost over recent days aided by improving global markets and a slowing in the rate of acceleration in UK covid-19 cases, although the potential for renewed Brexit tensions could cap sentiment towards the UK currency.
A sell-off in global markets meant the Pound fell against the Euro, Dollar and other safe-haven currencies, but gained against 'high beta' names such as the Canadian Dollar, Krone, New Zealand Dollar and Australian Dollar.
The British Pound was underpinned by news at the start of the week the UK government would proceed with lifting the majority of the remaining Covid restrictions on July 19, however shaky market sentiment is said by analysts to be an emerging risk on the near-term horizon.
The British Pound could be undermined by a surge in Covid-19 cases according to new analysis from foreign exchange strategists at one of the world's largest foreign exchange dealers.
The British Pound was tipped to remain supported amidst expectations for a continued recovery of the UK economy, underpinned by the removal of all Covid-related restrictions by July 19.
The British Pound will over coming days attempt to recover from recent lows, but any gains will depend on broader investor sentiment risk sentiment as well as rising fears that the UK is being left behind in the race to return to normality.
The British Pound is tipped to remain supported by analysts who say the announced delay to ending all Covid-19 restrictions in the UK was well known ahead of the actual announcement.
The UK announced 7,540 new cases of Covid-19 on June 09, up on 4330 reported the previous Wednesday.
Australia's slow vaccination rollout leaves the country vulnerable to further cycles of economically damaging lockdowns, and this could be one reason why the Australian Dollar is underperforming shows a new analysis.
UK Covid-19 cases continue to rise rapidly with cases doubling nearly every ten days according to the latest data, but news that hospitalisations are flat and all adults will be offered a vaccine by month end are limiting any major losses in value for the British Pound.
The British Pound is being tipped to advance against the Euro but tread water against the Dollar for the remainder of the year, thanks to a strong vaccine-inspired economic rebound.
The coming week will be a key one in determining whether or not the UK is released from all Covid-19 restrictions on June 21, an outcome that will likely have implications for how the British Pound trades near-term.
The British Pound could continue to increase in value over coming days according to analysts we follow, however advances against the Euro will likely be harder to achieve given the improving economic outlook for the region.
The significant reopening of the UK services sector on May 17 will fail to trigger a sufficiently large wave of Covid-19 cases to prompt the government to reintroduce restrictions in the summer, according to economists at a leading independent financial and economic research house.
Restrictions on movement and socialising were eased further in England, Wales and Scotland on Monday despite concerns about the spread in the UK of the Covid-19 variant that caused a surge in infections in India.
The UK's vaccine rollout will speed up in May according to reports, easing what might have been a contributing factor to the Pound's lacklustre April performance.
Timely news from Pfizer that they are to increase the supplies of their vaccine to the EU has quelled concerns that the region's rollout programme was about to suffer another unwelcome setback.
Questions of when, or indeed if ever, the Australian economy will return to full potential have been raised in the wake of comments from a senior government minister that international borders could remain effectively closed for an indefinite period.
Page 1 of 6