Pound (GBP) Quickly Recovers from Dip despite Lack of UK Data
A lack of domestic UK data yesterday left investors readjusting their portfolios as the end of the month and the first quarter of 2018 draws to a close.
With some of the other major currencies weighed down by poor domestic data, Sterling was able to record gains versus several of its peers yesterday.
Today’s Bank of England (BoE) Agent Summary of Business Conditions report could improve sentiment towards the Pound if conclusions are favourable.
Weak Eurozone Data Enables GBP/EUR Exchange Rate Gains
The GBP/EUR exchange rate rose yesterday after a disappointing run of Eurozone data was released early in the morning.
German import prices declined at double the expected pace, falling -0.6% both month-on-month and year-on-year during February, which bodes ill for the Eurozone inflationary outlook.
Sectoral confidence indices also proved weaker than expected.
GBP/USD Losses Limited by Below Forecast US Consumer Confidence Data
The GBP/USD exchange rate saw a sharp drop yesterday morning, but was able to recover around half of its losses later in the afternoon after a worse-than-expected US consumer confidence index for March.
The measure of sentiment was expected to rise from 130.8 to 131.0, but instead dropped to 127.7.
US fourth-quarter GDP is set for release today and could undermine the GBP/USD exchange rate given that economists expect the earlier estimate to be revised from 2.5% to 2.7%.
Pound Recovers versus Canadian Dollar despite Oil Price Increase
Political tensions in the Middle East helped push crude oil prices higher yesterday, taking the Canadian Dollar along with them.
However, after an early-morning decline the GBP/CAD exchange rate was able to recoup earlier losses and end the day around opening levels again.
GBP/AUD Exchange Rate Climbs Higher despite Boost for Australian Dollar Diminishing Trade War Fears
The GBP/AUD exchange rate was able to bounce higher after dropping earlier in the session, closing the day above opening levels despite support for the Australian Dollar on the back of unwinding trade tensions between China and the US.
However, it seems that the diminishing odds of a trade war between these two major powers was also supporting the US Dollar, preventing the high-risk AUD from capitalising on the situation.
Weakening Chances of Global Trade War Fails to Prevent GBP/NZD Exchange Rate Advance
While waning global trade tensions were strengthening the New Zealand Dollar yesterday, the GBP/NZD exchange rate was able to rise, with the ‘Kiwi’ somewhat restrained by a stronger US Dollar.
New Zealand building permits data for February is set for release tonight.