Lack of UK Data Sees Pound Sterling Exchange Rates Rise on Anticipation of Next Week’s May Brexit Speech
Pound Sterling ended the week on solid form, although there was no fresh information to incentivise markets to buy GBP.
Traders were instead looking past the weekend to next week, which will see Prime Minister Theresa May lay out the government’s vision and aims for a transitional period and trade deals post Brexit.
BBA loans for house purchase data covering January is set for release shortly.
Lacklustre German Data Helps GBP/EUR Exchange Rate Advance
The GBP/EUR exchange rate was able to record solid gains, with markets unimpressed by the day’s Eurozone data.
German consumption and capital investment both stagnated during the fourth-quarter, disappointing forecasts for growth of 0.1% and 0.4% respectively, while domestic demand grew just 0.1% and construction investment fell -0.4% during the same period.
European Central Bank (ECB) President Mario Draghi is set to speak in Brussels today.
GBP/USD Exchange Rate Makes Notable Gains as FOMC Minutes Continue To Confuse Markets
The US Dollar remained on weak form after Wednesday evening’s Federal Open Market Committee (FOMC) release of January meeting minutes continued to keep markets in limbo.
Some continued to believe that the Fed was sending more confident signals than during their policy meetings at the end of last year, while others claimed the language of the minutes suggested it was trying to rein in expectations for more rate hikes than the three targeted for this year.
Federal Reserve official James Bullard is set to speak on the issue of the US economy and monetary policy; as he tends to be cautious in his outlook he could say something that weakens USD.
Above Forecast Canadian CPI Data Trims GBP/CAD Exchange Rate Gains
The Canadian Dollar was on strong form yesterday against all of its major peers apart from the Pound, although GBP/CAD was only able to eke out fractional gains.
January’s Canadian consumer price index figures bettered expectations, with price growth rising 0.7% month-on-month compared to forecasts for 0.5% and year-on-year price growth weakening from 1.9% to 1.7% instead of the expected drop to 1.5%.
Core price growth rose from 1.6% to 1.8% instead of to 1.7% as expected.
Joyce Resignation Weighs on Australian Dollar; GBP/AUD Exchange Rate Rises
The GBP/AUD exchange rate was on bullish form yesterday, with markets worried by the resignation of National Party leader Barnaby Joyce.
The National Party supports Malcolm Turnbull’s Labour Party in a coalition, with a combined majority in Parliament of just one seat.
Although Joyce remains a member, the scandal surrounding his departure could force him out of the party together or see him being dismissed, which could trigger a general election.
The latest ANZ Roy Morgan weekly consumer confidence index figures are set for release tonight.
GBP/NZD Exchange Rate Surges despite Strong NZ Retail Sales Data
Thursday night saw the release of some positive New Zealand retail sales figures, yet on Friday the GBP/NZD exchange rate was making bullish gains.
Retail sales figures grew 1.7% during the fourth-quarter, against predictions of a rise from 0.2% to 1.4%. But still the New Zealand Dollar tumbled.
January trade balance figures are set for release today; a growing surplus would boost the New Zealand Dollar.