Pound Sterling Exchange Rate in Freefall Following Carney Comments
Pound Sterling (GBP) exchange rates initially weakened on Thursday as the UK’s latest retail sales figures printed even lower than expected.
Attempts by the Pound to mount a recovery later in the afternoon also proved to be short lived following comments by Bank of England (BoE) Governor Mark Carney late in the day.
Carney indicated that a rate hike this year was still ‘likely’ but talked down suggestions that interest rates could rise next month, as had been widely expected.
GBP/EUR Exchange Rate Slides despite Concerns for Eurozone Reform
The Pound Euro (GBP/EUR) exchange rate slumped again yesterday as investors fled Sterling in the wake of Carney’s comments.
This slide in GBP helped to offset growing concern over Germany and France’s failure to agree on vital economic and financial reforms to the Eurozone.
European Commissioner for Economic and Financial Affairs Pierre Moscovici, warned time is running out to implement the reforms, which looked to pressure the Euro (EUR) exchange rate earlier in the day.
GBP/USD Exchange Rate Weakened by US Manufacturing Data
The GBP/USD exchange rate tumbled to a two-week low on Thursday as Carney’s comments extended the pairing’s recent losses.
However the US Dollar (USD) advance was also aided by better-than-expected manufacturing figures, with the Philadelphia factory index unexpectedly rising from 22.3 to 23.2 in April.
GBP/CAD Exchange Rate Advances Following Strong Uptick in Oil Price
The Pound Canadian Dollar (GBP/CAD) exchange rate tanked yesterday as a combination of rising oil prices and weakened Sterling sentiment helped the ‘Loonie’ to punch higher.
Looking ahead the Canadian Dollar (CAD) looks poised to surge later today, with Canada’s latest CPI figures expected to confirm domestic inflation rose from 2.2% to 2.4% last month, while the possible extension of crude production cuts at the latest OPEC could further boost oil prices.
GBP/AUD Exchange Rate Decline Aided by Rising Iron Ore Prices
A brief recovery in the Pound Australian Dollar (GBP/AUD) exchange rate proved to be nothing more than a ‘dead cat bounce’ yesterday as rocketing iron ore prices helped the ‘Aussie’ to exploit the weakness in GBP.
GBP/NZD Exchange Rate Slides as May Rate Hike in Question
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate suffered a similar fate to the GBP/AUD exchange rate yesterday, although the ‘Kiwi’ struggled to extend its gains earlier this morning due to the rising strength of the US Dollar.