Pound Sterling Exchange Rate Stabilises Following Saunders Comments
The Pound Sterling (GBP) exchange rate initially tumbled on Friday as it continued to feel the drag of comments by Bank of England (BoE) Governor, Mark Carney, who suggested the bank could delay the next rate hike.
However the Pound was able to find some support again later in the morning following a speech by the BoE’s Michael Saunders as he struck a decidedly more hawkish tone regarding a possible rate hike in May.
GBP/EUR Exchange Rate Firms in Run up to ECB Policy Meeting
The Pound Euro (GBP/EUR) exchange rate was able to find its feet again on Friday as markets began to brace for the European Central Bank’s (ECB) policy meeting later this week.
EUR investors have already begun to reposition themselves ahead of Thursday’s rate decision as economists forecast the ECB will leave its monetary policy unchanged once again.
Looking ahead the Euro could face further losses this morning as the latest Eurozone PMI figures are expected to see private sector growth slow yet again in April.
GBP/USD Exchange Rate Weakened by Fed Rate Expectations
The GBP/USD exchange rate slid to a new two-week low on Friday, with the pairing closing the week’s session down almost two cents as the US Dollar (USD) was buoyed by rising Federal Reserve rate expectations.
The latest rate hike speculation followed on from a speech by Chicago Federal Reserve Bank President Charles Evans who suggested there was little risk of inflation moving lower.
GBP/CAD Exchange Rate Holds Steady as Canadian Inflation Disappoints
Some weaker-than-expected Canadian CPI figures helped the Pound Canadian Dollar (GBP/CAD) exchange rate to stabilise at the tail end of last week as inflation only reached 2.3% in March rather than the 2.4% that had been forecast.
Also pressuring the CAD exchange rate on Friday was a slide in oil prices following a tweet from US President Donald Trump in which he blamed OPEC for creating ‘artificially high’ prices.
GBP/AUD Exchange Rate Edges Higher Following Lift in US Dollar
After initially sliding on Friday morning the Pound Australian Dollar (GBP/AUD) exchange rate was able to make some small gains by the end of the day’s session as the strength of the US Dollar led to reduced demand for the ‘Aussie’.
GBP/NZD Exchange Rate Strengthens as Risk Appetite Slides
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate told a similar story to the GBP/AUD exchange rate at the end of last week, with markets shunning the ‘Kiwi’ following a drop in risk appetite.