Pound Sterling Exchange Rate News: BoE Delays Rate Hike, Lowers Growth Expectations

Pound Sterling (GBP) Exchange Rate Slumps Following BoE Super Thursday

The Pound (GBP) exchange rate plummeted against the majority of its peers on Thursday as markets reacted to the Bank of England’s (BoE) latest policy meeting.

The meeting saw policymakers vote 7-2 to leave interest rates on hold in May, in a move that was in sharp contrast to forecasts made early last month that the bank was on track for a rate hike in May.

Further weakening the appeal of Sterling was the BoE’s accompanying growth forecasts for 2018, which saw its previous forecasts revised down from 1.8% to 1.4% in response to the disruption caused by the heavy snow in the first quarter.

GBP/EUR Exchange Rate Slides Ahead of Draghi Speech

The Pound Euro (GBP/EUR) exchange rate took a significant hit yesterday as the pairing’s losses were extended by a bounce in the single currency following a dip in the US Dollar (USD).

European Central Bank President, Mario Draghi will speak later today, with markets bracing for a possible slide in the Euro (EUR) exchange rate if he raises concerns over the recent dip in Eurozone inflation.

GBP/USD Exchange Rate Losses Capped as US Inflation Misses

While the Pound US Dollar (GBP/USD) exchange rate struck lower on Thursday following the BoE’s rate decision, the pairing’s losses appeared to be tempered by the release of the latest US CPI figures.

The data saw US core inflation fall short of expectations last month as it held at 2.1% in April, with the disappointing result leading some analysts to suggest that USD investors may now be forced to rethink the US Dollar’s recent rally.

GBP/CAD Exchange Rate Continues to Depreciate as Oil Prices Surge

The Pound Canadian Dollar (GBP/CAD) exchange rate continued to trend lower on Thursday as the Canadian Dollar (CAD) continued to be buoyed by rising oil prices, with Brent crude striking $77.50 a barrel as markets brace for potential disruption to Iran’s crude exports.

The ‘Loonie’ could be put on the defensive later this afternoon however, as Canada’s latest labour figures are expected to reveal domestic employment growth slowed in April.

GBP/AUD Exchange Rate Plummets as Risk Appetite Grows

The Pound Australian Dollar (GBP/AUD) exchange rate plunged by nearly two cents on Thursday, with the ‘Aussie’ (AUD) able to further extend its gains overnight as the weakness of the US Dollar (USD) and an uptick in commodity prices prompted markets to invest in ‘riskier’ currencies.

GBP/NZD Exchange Rate Retreats as RBNZ Driven Gains Eliminated by BoE Rate Decision

Having initially jumped yesterday morning following a dovish policy statement from the Reserve Bank of New Zealand (RBNZ) the Pound New Zealand Dollar (GBP/NZD) exchange rate was quickly forced to relinquish these gains as markets reacted to the BoE’s own statement.

Luke Trevail

Luke studied Journalism at university but quickly moved into the financial sector, initially working in retail banking before joining TorFX in 2007. As a Senior Account Manager Luke assists in overseeing the management of the company’s exposure to currency volatility. He uses his years of foreign exchange experience to produce regular news updates exploring the latest currency movements.

Contact Luke Trevail