Pound (GBP) Exchange Rate Weakened by Brexit Uncertainty
The Pound (GBP) continued to retreat against many of its peers on Friday as investors remained wary of the UK currency amid a resurgence in Brexit uncertainty.
This followed a warning from Irish Prime Minister Leo Varadkar, who suggested the UK may fail to secure a withdrawal agreement unless more substantial progress is made in Brexit negotiations next month.
GBP/EUR Exchange Rate Stable as Italy’s Populist Government Vows to Raise Spending
The Pound Euro (GBP/EUR) exchange rate stabilised at the end of last week, closing the session around a cent up as concerns over Italy’s incoming coalition government dented EUR sentiment.
This was sparked by suggestions the new government could upend the Eurozone’s carefully balanced economy as it unveiled plans for tax cuts and major spending increases.
Some EU officials even went so far as to suggest the new government’s ‘irresponsible economic policies’ could ‘set the stage for the next Eurozone crisis’.
GBP/USD Exchange Rate Tumbles as US Treasury Yields Soar
The Pound US Dollar (GBP/USD) exchange rate ticked lower again on Friday as this week’s strong US economic data saw US treasury yields touch a new seven-year high at the end of the week.
The US Dollar (USD) may look to continue its advance at the start of this week’s session as well, with the USD exchange rate poised to strengthen if the Federal Reserve’s policymakers set to talk later this evening help to further bolster US rate expectations.
GBP/CAD Exchange Rate Rallies as Canadian Core Retail Sales Falter
The Pound Canadian Dollar (GBP/CAD) exchange rate rallied sharply on Friday as the ‘Loonie’ was pressured by an unexpected contraction in core retail sales.
This data revealed core sales declined 0.2% in April, well below the 0.5% expansion which had been forecast and offsetting Canada’s robust inflation figures.
Brexit Concerns Prompts GBP/AUD Exchange Rate to Retreat
The Pound Australian Dollar (GBP/AUD) exchange rate edged lower on Friday, with the broad-based weakness in Sterling (GBP) leaving the door open for the ‘Aussie’ to recoup some of its losses from earlier in the week.
GBP/NZD Exchange Rate Stabilises as New Zealand’s Retail Sales Disappoint
After initially dipping at the start of this week’s session, the Pound New Zealand Dollar (GBP/NZD) exchange rate appeared to find its footing by the start of European trade on New Zealand’s retail sales printing lower than expected.