Improved Market Outlook for Brexit Boosts Pound Sterling Exchange Rates despite Lack of Fresh Economic Data

Pound Sterling Exchange Rates Hold onto Thursday’s Gains

Friday saw Pound Sterling holding, if not bettering, the sharp gains made on Thursday. Despite there being nothing on the domestic data calendar, markets judged the overall outlook for the Pound to have improved in recent weeks and this was enough to buoy Sterling against its major currency peers.

Focus on Cautious ECB Meeting Minutes Weighs on Euro; GBP/EUR Finishes Week near Highs

Markets were still dwelling on the latest European Central Bank (ECB) monetary policy meeting accounts on Friday, with the caution shown by policymakers during the gathering undermining positivity of the day’s data. Data showing that the Eurozone trade surplus widened during February therefore failed to provide much support and so GBP/EUR was able to end the week just below its highs.

GBP/USD Exchange Rate Holds Firm as Weakening Consumer Sentiment Weighs on US Dollar

The GBP/USD exchange rate spiked higher early on Friday, then drifted back down to opening levels by the end of the day – still a high point as far as the week’s performance was concerned. Federal Reserve official Eric Rosengren stated that the Fed may need to hike interest rates more times than it currently expects, but a sharper-than-expected fall in the University of Michigan sentiment index weighed on US Dollar appetite.

US advance retail sales figures and speeches from Fed officials Kaplan, Kashkari and Bostic could create volatility for the US Dollar this afternoon.

GBP/CAD Exchange Rate Supported despite Rise in Crude Oil Prices

The Pound managed to climb against the Canadian Dollar on Friday, even though the ‘Loonie’ was supported by rising crude oil prices and some positive domestic data. March’s existing home sales figures showed solid growth of 1.3%, although the positivity that this generated was moderated by the fact February had seen a decline of -6.5%.

GBP/AUD Exchange Rate Holds Starting Levels despite Chinese Import Data

The Australian Dollar received some support thanks to a sharp rise in Chinese import data, but a warning from the Reserve Bank of Australia (RBA) regarding the high levels of household debt somewhat counterbalanced this positivity. The GBP/AUD exchange rate ended the day around opening levels.

GBP/NZD Higher as Risk-Appetite Fails to Boost New Zealand Dollar

The GBP/NZD exchange rate ended the day higher, with the New Zealand Dollar weighed down by a weakening in the latest manufacturing PMI. Although global market risk-appetite was picking up, the ‘Kiwi’ failed to particularly benefit.

REINZ house sales figures for March could give the New Zealand Dollar a boost going into tomorrow, but in the meantime the ‘Kiwi’ may be left vulnerable to the US economic data.

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