Pound Sterling (GBP) Exchange Rate Nosedives as UK GDP Slumps
The Pound (GBP) plummeted against its peers on Friday as some weaker-than-expected GDP figures prompted investors to shun the UK currency.
The Office for National Statistics (ONS) reported that UK growth slowed from 0.4% to 0.1% in the first quarter of 2018, with many observers suggesting this will further dent the case for the Bank of England to raise interest rates next month.
GBP/EUR Exchange Rate Slide Accelerated by Robust German Labour Figures
Accelerating the losses in the Pound Euro (GBP/EUR) exchange rate at the end of last week was the publication of Germany’s latest labour figures, with another robust fall in unemployment being welcomed by EUR investors.
However, slightly denting the Euro on Friday was the release of France’s own GDP figures, with growth in the Eurozone’s second largest economy shown to have slowed more than expected at the start of 2018.
GBP/USD Exchange Rate Tumbles as US GDP Beats Expectations
The Pound US Dollar (GBP/USD) exchange rate saw the most dramatic fall at the end of last week’s session as US GDP figures printed higher than expected, with US annualised growth shown to have struck 2.3% at the start of 2018.
While this was slower than the previous quarter it beat forecasts that growth would have dipped to 2%, preventing a similar sell-off to that which hit the Pound.
The US Dollar may look to build on its gains again later this afternoon, with economists forecasting the latest PCE price index to report that US inflation strengthened in March.
GBP/CAD Exchange Rate Pressured by Rising Oil Prices
The Pound Canadian Dollar (GBP/CAD) exchange rate struck a two-month low at the end of last week’s session, mostly on the back of the UK’s disappointing GDP figures.
However a third week of gains in oil markets also applied pressure to the GBP/CAD exchange rate last week as the ‘Loonie’ reaped the benefits of rising crude prices.
GBP/AUD Exchange Rate Slides as Markets Flock to Riskier Assets
The Pound Australian Dollar (GBP/AUD) exchange rate also slumped on Friday, closing the week’s session at a new monthly low as some mild weakness in the US Dollar granted some respite for the ‘Aussie’.
GBP/NZD Exchange Rate Falls amid Rising Risk Appetite
The Pound New Zealand Dollar (GBP/NZD) exchange rate suffered a similar fate to GBP/AUD on Friday, with an uptick in market risk sentiment allowing the ‘Kiwi’ to capitalise on the Pound’s weakness.