Today’s Live Pound Sterling Headlines
Pound stumbles on fresh Brexit concerns – Theresa May dismisses reports the government is considering remaining in the EU customs union.
GBP/EUR losses slowed by Italy’s political concerns – Will the new populist government seek debt relief to fund its policies?
GBP/USD sinks as US manufacturing accelerates – Further bolstered US rate expectations.
Markets await Canadian CPI figures – Slowing inflation may weaken CAD.
Pound Sterling Exchange Rate Weakens Over Brexit Customs Uncertainty
Pound Sterling (GBP) trended lower against the majority of its peers on Thursday as Sterling came under considerable selling pressure following fresh concerns over Brexit.
This latest bout of uncertainty comes after Theresa May dismissed a report suggesting the UK could stay in the EU’s customs union after 2021.
This dismissal was a blow to GBP investors, who were hopefully that remaining in the EU’s customs union beyond the Brexit transition period would help to minimise disruption to the UK economy.
Losses in GBP/EUR Exchange Rate Capped by Italy Concerns
The Pound Euro (GBP/EUR) exchange rate tumbled by around 0.2% during yesterday’s session following the broad-based fall in GBP.
However the Euro’s (EUR) gains proved to be capped by ongoing concerns that a new populist government in Italy could rock the boat in Europe by asking the European Central Bank (ECB) to forgive 250 billion euros of debt.
GBP/USD Exchange Rate Weakened by Pick up in US Manufacturing Activity
The Pound US Dollar (GBP/USD) exchange rate slumped by around half a cent on Thursday, with the US Dollar (USD) building on its recent gains with the release of a stronger-than-expected manufacturing report from the Philadelphia Federal Reserve.
The report pointed to a tightening labour market, which was seen as further bolstering expectations the Fed could accelerate the pace of monetary tightening this year.
GBP/CAD Exchange Rate Slumps as Oil Prices Rocket to Over $80
The Pound Canadian Dollar (GBP/CAD) exchange rate continued to trade lower yesterday, with the pairing closing on a four-month low as concerns over Iranian oil exports drove Brent crude over $80 a barrel for the first time since 2014.
However the ‘Loonie’ (CAD) may be forced to retreat again later today as economists forecast domestic inflation will have dipped in April.
GBP/AUD Exchange Rate Stumbles on Upbeat Australia Employment Figures
The Pound Australian Dollar (GBP/AUD) exchange rate remained on the back foot during Thursday’s trading session as a robust uptick in employment growth in Australia’s latest labour report kept the ‘Aussie’ on the offensive, despite an unexpected uptick in domestic unemployment.
GBP/NZD Exchange Rate Stable as Markets React to Labour Government Budget
The Pound New Zealand Dollar (GBP/NZD) exchange rate appeared to be the only major Sterling pairing not to collapse on Thursday, with the ‘Kiwi’ (NZD) prevented from exploiting the weakness in GBP as markets appeared underwhelmed by the release of the government’s first budget.