At the start of the week, the EUR/USD was trading on the upside, moving closer to 1.13. The European currency was pushed higher last week but faces risks ahead of the EU recovery fund to be announced in the coming days. China promoting a bull market has also weighed heavily on the safe-haven USD.

Furthermore, the Pound-to-Dollar exchange rate is trading higher, close to 1.25 on Monday. The pair was seen rebounding sharply from June lows last week and could climb even further this week. The risk-on sentiment is providing support for the British Sterling, ahead of UK construction PMI data, as the Pound put an end to three consecutive weeks of losses against the Dollar last week. 

On the other hand, the GBP/EUR pair showed signs of stabilising, after facing Brexit-related worries. The Pound bounced back from three-month lows against the Euro last week, and the charts are now pointing towards a further correction higher. The Pound was closer to the 1.09 mark against the Euro after being sold early last week but was testing 1.11 by Friday’s closing session.

The Pound-to-Canadian Dollar is at risk of falling to 1.6756 early this week ahead of a government spending review but is still in the chance of recovering solid ground.