The Pound to New Zealand Dollar edged higher on Tuesday, clawing back slight gains lost on Monday as traders focused on UK-EU trade talks. Risk-sensitive currencies such as NZD also took a breather as markets eyed the resurgence of coronavirus cases in the US.
What’s Been Happening: Upbeat US Jobs Data Boosts Risk Appetite
The New Zealand Dollar suffered losses at the start of the week despite data showing the British economy suffered its worst slump since 1979 and the central bank warned the economy may have contracted by 20% in the first six months of 2020.
The ‘Kiwi’ jumped as risk appetite increased after reports revealed a coronavirus vaccine being developed by BioNTech and Pfizer had shown potential during early human trials.
At the end of last week, the ‘Kiwi’ was able to make further gains following the release of upbeat US jobs data which indicated the global economy was on track for a swift recovery.