Pound Sterling Exchange Rate Rises: GBP Climbs as Markets Forecast Progress in New Brexit Talks

Pound Sterling (GBP) Boosted as Markets Look Forward to More Brexit Talks

Pound Sterling (GBP) was on strong form yesterday, with markets feeling hopeful that today’s technical meetings between negotiators from the UK and the EU will be fruitful. As well as discussing the issue of trade, officials will also attempt to find a solution to the Irish border problem.

UK weekly earnings growth data today could boost GBP if it shows an uptick in pay, as this would boost the outlook for consumer spending.

GBP/EUR Exchange Rate Climbs despite News of Forecast-Beating Greek Budget Surplus

While the Euro (EUR) was largely on strong form yesterday, the GBP/EUR exchange rate was able to hold mild gains. Markets were cheered to discover that the Greek government posted a larger-than-expected budget surplus in the first quarter of the year. This is positive news from the Eurozone’s weakest economy.

German and Eurozone ZEW sentiment survey results are released this morning; with sentiment forecast to weaken the GBP/EUR exchange rate could be set to make gains.

GBP/USD Exchange Rate Climbs as Strong Risk Appetite and Trump Currency Comments Weaken US Dollar

The GBP/USD exchange rate was able to make solid gains yesterday, advancing over half a percent despite better-than-expected advance retail sales growth during March. Dwindling tensions over Syria were prompting markets to sell out of the US Dollar, as were comments from President Donald Trump that China and Russia were attempting to devalue their currencies. This suggests the President could be unhappy with the current strength of USD.

A speech from Federal Reserve official John Williams on the Economic Outlook could give US rate hike odds – and therefore the US Dollar – a boost today, as he is typically a confident member of the central bank.

Government Funding for Canada Oil Pipeline Fails to Prevent GBP/CAD Advance

The Canadian Dollar (CAD) was on largely strong form yesterday as markets reacted to the recent announcement by Prime Minister Justin Trudeau that the government would offer financial aid to a struggling pipeline project. This would improve the outlook for Canadian oil, but the GBP/CAD exchange rate still managed to record some gains.

Low impact Canadian manufacturing figures are the only data set for release today.

GBP/AUD Exchange Rate Climbs as Strong US Data Weakens Australian Dollar

The better-than-expected US data helped pressure the Australian Dollar (AUD) lower yesterday, with markets also focusing on the release of policy meeting minutes early this morning. As a result, the GBP/AUD exchange rate was able to record gains in the region of half a percent.

The Australian Dollar will spend much of today reacting to the release of minutes from the Reserve Bank of Australia (RBA) April monetary policy meeting.

GBP/NZD Exchange Rate Climbs Higher as Markets Await Dairy Auction

The GBP/NZD exchange rate was able to advance half a percent yesterday, with strong US data weighing on the New Zealand Dollar (NZD). The ‘Kiwi’ was also facing low demand as markets were awaiting the results of today’s Global Dairy Trade auction.

Chinese GDP, industrial production and retail sales figures could have a significant impact upon the New Zealand Dollar today as well as the dairy auction.

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