Pound Sterling Exchange Rates Recover even as Industry and Construction Data Disappoints Forecasts

Pound Exchange Rates Rebound despite Weak Manufacturing, Industry and Construction Data

Despite some disappointing industrial, manufacturing and construction output data for January, Pound Sterling was able to end the day with strong gains on Friday.

Manufacturing production and industrial production both recorded slower-than-expected growth, while construction slumped by a much worse-than-anticipated -3.9% year-on-year.

Poor Eurozone Data and Strong US Labour Market Figures Boost GBP/EUR

The GBP/EUR exchange rate was able to record strong gains after the release of the robust US labour market data.

Poor Eurozone data was also weakening the Euro, with the German trade balance showing a smaller-than-expected surplus thanks to a surprise -0.5% decline in exports.

Industrial production showed a surprise -0.1% decline month-on-month and year-on-year slowed more than economists had predicted to 5.5%.

Latest US Jobs Data Boosts GBP/USD Exchange Rate as Markets Focus on Trade War Fears

Friday’s non-farm payrolls report may have shown an impressive and above-forecast 313,000 people entered the workforce in January, but trade war fears caused the US Dollar to slump.

GBP/USD was left strong as markets reacted to news that President Donald Trump had signed an order that would see his steel and aluminium import tariffs take effect in 15 days’ time.

The most notable data on a sparse calendar today is the US Monthly Budget Statement for February.

Canadian Labour Market Data Keeps GBP/CAD Stuck at Opening Level

The Canadian Dollar was mostly on strong form on Friday, although GDP/CAD managed to hold onto opening levels. While the latest Canadian employment change figure showed a smaller-than-expected increase in the workforce of 15,400 during February, the unemployment rate unexpectedly fell from 5.9% to 5.8%.

GBP/AUD Slips Lower as Markets Question Strength of Long-Term US Monetary Policy Outlook

The Australian Dollar was on the rise yesterday, pushing Pound Sterling lower.

While the latest US jobs data may have been strong enough to support a rate hike this month, markets weren’t entirely convinced it improved the long-term outlook for US monetary policy, especially as wage growth slowed.

ANZ Roy Morgan weekly consumer confidence figures will be released late tonight.

GBP/NZD Exchange Rate Edges Upwards as Lack of Data Weighs on New Zealand Dollar

The New Zealand Dollar made select gains yesterday, but was the weakest of the commodity trio and the GBP/NZD exchange rate was able to inch higher.

New Zealand food price data for February could cause some volatility for NZD, as food price growth accounts for around a fifth of the consumer price index.

Laura Parsons

Laura has been working in the financial services sector since 2012 and provides currency news updates for a number of online and print publications. Over the years she has produced exchange rate analysis for publishers like French Property News, The Express, The Telegraph and Forbes.

Contact Laura Parsons