Pound Sterling (GBP) Exchange Rate Weakens Ahead of BoE Policy Meeting
The Pound (GBP) remained on the defensive at the end of last week as another run of soft UK data appeared to eliminate any remaining hope that the Bank of England (BoE) would raise interest rates this month.
In fact the market odds of a May rate hike have now fallen below 10%, plummeting from odds of around 85% in mid-April, leaving little upside to Sterling in the eyes of investors.
GBP/EUR Exchange Rate Advances as Eurozone Retail Sales Miss
The Pound Euro (GBP/EUR) exchange rate found some much needed relief at the end of last week’s session, with the pairing rallying from a five-week low following the release of some disappointing retail sales figures.
Data published by Eurostat revealed Eurozone retail sales growth slowed from 0.3% to 0.1% in March, missing forecasts it would rise to 0.5% and leaving the Euro (EUR) to weaken on suggestions this would further weaken the case for the European Central Bank (ECB) to begin tightening its monetary policy.
GBP/USD Exchange Rate Plummets as US Unemployment Falls to 17-Year Low
The Pound US Dollar (GBP/USD) exchange rate continued to march lower on Friday, falling by around half a cent as investors reacted to the latest US labour figures.
While US Payrolls figures fell slightly short in April the US Dollar (USD) was still buoyed as the domestic unemployment rate fell to 3.9%; the lowest rate since 2000.
However, with wage growth failing to keep pace with the narrowing labour pool, analysts remained pessimistic on the chances of the data spurring the Federal Reserve into accelerating its monetary tightening.
GBP/CAD Exchange Rate Slumps as Canadian Manufacturing Activity Surges
The Pound Canadian Dollar (GBP/CAD) exchange rate struck close to a two-month low at the tail end of last week’s session following the release of Canada’s impressive manufacturing PMI, which leapt from 59.8 to 71.5, the index’s highest reading since March 2011.
GBP/AUD Exchange Rate Advances as Australian Retail Sales Remain Flat
The Pound Australian Dollar (GBP/AUD) exchange rate rallied overnight on Monday as Australia’s retailers reported that domestic retail sales stalled in March, with analysts warning the weaker-than-expected sales growth may have dragged on first quarter GDP.
GBP/NZD Exchange Rate Stable Ahead of RBNZ Meeting
After sliding on Friday, the Pound New Zealand Dollar (GBP/NZD) exchange rate appears to be holding steady at the start of this week’s session, with markets awaiting the conclusion of the Reserve Bank of New Zealand’s (RBNZ) latest policy meeting on Wednesday.