Pound Sterling (GBP) Exchange Rate Volatile Following Rudd Resignation
The Pound (GBP) got off to a mixed start this week, with the resignation of the UK Home Secretary Amber Rudd, prompting some initial weakness in the currency as it meant that Theresa May lost a pro-EU ally.
However this was not enough to prevent Sterling from taking advantage of the weakness in some of its peers later in the session.
Looking forward the Pound may retreat later this morning with the publication of the UK’s latest manufacturing PMI, with markets forecasting that factory activity will have slowed again in April, weakening hopes that the UK economy had rebounded in the second quarter.
GBP/EUR Exchange Rate Climbs as German Inflation Misses
The Pound Euro (GBP/EUR) exchange rate ticked higher on Monday as the single currency was pressured by some weaker-than-expected inflation figures from Germany.
Core inflation in the Eurozone’s largest economy fell from 1.5% to 1.4% in March, leading to speculation the European Central Bank (ECB) is likely to leave interest rates on hold for some time to come.
GBP/USD Exchange Rate Continues to Slide as US Inflation Ticks Higher
The Pound US Dollar (GBP/USD) exchange rate continued its retreat at the start of this week’s session as the Federal Reserve’s preferred measure of inflation, the PCE Price Index, revealed that US inflation reached the Fed’s target of 2% in March.
Meanwhile the US Dollar may continue to build on these gains later this afternoon when the US releases its own Manufacturing PMI, with USD expected to be supported by another solid expansion of the US factory sector.
GBP/CAD Exchange Rate Muted as Oil Prices Remain High
The Pound Canadian Dollar (GBP/CAD) exchange rate remained subdued at the start of this week’s session as the ‘Loonie’ was buoyed by the strength of oil markets, with crude prices holding close to a three-year high.
GBP/AUD Exchange Rate Holds Steady Following RBA Rate Decision
After ticking higher on Monday, the Pound Australian Dollar (GBP/AUD) exchange rate remained mostly flat overnight as markets reacted to the Reserve Bank of Australia’s latest rate decision.
There were few surprises in the policy meeting as the bank voted to leave interest rates on hold again in May, expressing concerns over the slowdown in the domestic jobs market.
GBP/NZD Exchange Rate Advances Ahead of Fed Meeting
The Pound New Zealand Dollar (GBP/NZD) exchange rate rallied around a cent on Monday, with investors continuing to steer clear of the ‘Kiwi’ as they await the conclusion of the Federal Reserve’s policy meeting on Wednesday.