Forex News: Pound Sterling (GBP) Exchange Rate Suffers as Manufacturing Slows
The Pound (GBP) tumbled against the majority of its peers on Tuesday as markets reacted to the UK’s latest manufacturing figures.
IHS Markit reported that the UK’s manufacturing PMI tumbled from 54.9 to 53.9 last month, with the sector expanding at its slowest pace in 17 months.
This was a major blow for Sterling as it hints the UK economy may have got off to an even rockier start in the second quarter; a worrying prospect given the UK economy only expanded 0.1% in the first quarter.
GBP/EUR Exchange Rate Plummets as Sterling Sentiment Sours
A lull in Eurozone economic data meant the Pound Euro (GBP/EUR) exchange rate losses yesterday were mostly driven by weakness in Sterling (GBP), with the Euro (EUR) faring far worse against its other peers.
Looking ahead the Eurozone will publish its latest GDP figures this morning, possibly prompting some weakness in the single currency if growth is shown to have slowed in the first quarter, as expected.
GBP/USD Exchange Rate Nosedives on Solid US Manufacturing Figures
The Pound US Dollar (GBP/USD) exchange rate crashed around 1% on Tuesday, with the pairing striking a new three-month low as the release of a robust US manufacturing PMI accentuated the pairing’s losses.
Meanwhile the Federal Reserve will conclude its latest policy meeting later this evening, with the direction of the US Dollar (USD) likely to be driven by the bank’s outlook and whether investors can expect a rate hike in June.
GBP/CAD Exchange Rate Slides as Canadian GDP Jumps
The Pound Canadian Dollar (GBP/CAD) exchange rate fell by over a cent on Tuesday as the pairing’s losses were accelerated by the release of Canada’s latest GDP data, with domestic growth shown to have rebounded from -0.1% to 0.4% in February.
GBP/AUD Exchange Rate Depreciates as Markets Brush Off RBA Concerns
The Pound Australian Dollar (GBP/AUD) exchange rate fell back during yesterday’s session, with concerns over the Reserve Bank of Australia’s (RBA) dovish tone in its latest policy meeting having little impact in the face of the UK’s disappointing manufacturing PMI.
GBP/NZD Exchange Rate Employment Slumps Following Upbeat NZ Labour Figures
The Pound New Zealand Dollar (GBP/NZD) exchange rate tumbled to a two-week low during the Asian trading session this morning, with NZD investors welcoming a drop in New Zealand’s unemployment rate, which fell to 4.4% in the first quarter.