Pound Sterling (GBP) Exchange Rate Rallies as Investors Seek a Bargain
After nosediving on Thursday following the Bank of England’s decision to leave rates on hold the Pound (GBP) exchange rate appeared to fare slightly better on Friday as investors sought to profit from the currency’s recent weakness.
Meanwhile the focus this week will be on the UK’s latest labour report, with Sterling possibly set to rally if UK wage growth crept higher again in March.
GBP/EUR Exchange Rate Stabilises as Draghi Calls for Complete Banking Union
The Pound Euro (GBP/EUR) exchange rate found its attempts to rally cut short on Friday as the pairing fell back later in the session following a speech by European Central Bank (ECB) President Mario Draghi.
In his speech Draghi backed calls for the completion of a European banking union, with investors appearing receptive to the plans on hopes it would help to mitigate some of the risks facing the Eurozone economy.
GBP/USD Exchange Rate Advances as Fed Policymaker Suggests Us Rates Nearing Neutral Level
The Pound US Dollar (GBP/USD) exchange rate made some positive strides towards recovery at the end of last week’s session thanks to some dovish comments by St. Louis Reserve Bank President, James Bullard.
The Federal Reserve policymaker suggested that the bank should put the brakes on any further rate hikes as he believes rates are already nearing a ‘neutral’ level and further hikes would be of little economic benefit.
GBP/CAD Exchange Rate Jumps Following Canadian Employment Growth Contracts
The Pound Canadian Dollar (GBP/CAD) exchange rate was also able to find a firm footing on Friday as Canada’s latest Labour figures revealed a surprise contraction in employment in April, with the number in work falling by around 1,000, rather than expanding by 17,000, as predicted.
GBP/AUD Exchange Rate Stable as Markets Await RBA Minutes
The Pound Australian Dollar (GBP/AUD) exchange rate was prevented from sliding any further on Friday as a dip in iron ore prices helped prevent AUD from advancing.
Looking ahead the ‘Aussie’ could face some pressure later tonight if the minutes from the Reserve Bank of Australia’s (RBA) recent policy meeting are seen as being overly cautious in tone.
GBP/NZD Exchange Rate Advances as New Zealand’s Services PSI Disappoints
The Pound New Zealand Dollar (GBP/NZD) exchange rate is marching higher at the start of this week’s session following the release of New Zealand’s latest services PMI late on Sunday as the index slumped from 58.6 to 55.9 in April.