Pound (GBP) Exchange Rate Slides as Brexit Uncertainty Grows
The recent downtrend in the Pound (GBP) continued unabated at the start of this week’s session, with a renewed focus on the uncertainty surrounding Brexit weighing heavily on Sterling sentiment throughout the day.
Looking ahead the Pound may find some respite from Brexit headlines today as the focus returns to the outlook for UK interest rates, with markets likely to play close attention to Bank of England (BoE) Governor Mark Carney’s speech this morning for any hints on whether a rate hike can still be expected this year.
Italian Government Concerns Prevent Major Losses in GBP/EUR Exchange Rate
While the Pound Euro (GBP/EUR) exchange rate retreated on Monday, its losses were far more modest than other Sterling pairings as jitters over the new populist government in Italy continued to drag on the single currency.
The main point of concern appears to be the coalition government’s pledge for tax cuts and increased government spending, something observers suggest will undermine the Eurozone’s push for fiscal responsibility and leave the bloc more exposed to future shocks.
GBP/USD Exchange Rate Slumps as US-China Trade War ‘On Hold’
The Pound US Dollar (GBP/USD) exchange rate plummeted to a new 2018 low on Monday as the US Dollar surged higher following the announcement China had agreed to a trade framework with the US to rebalance the US-China trade deficit.
This saw the two sides narrowly avoid a trade war, much to the relief of markets, with observers also suggesting the agreement will make it easier for the Federal Reserve to speed up its monetary tightening.
GBP/CAD Exchange Rate Tumbles as Brent Crude holds close to $80
The Pound Canadian Dollar (GBP/CAD) exchange rate was met by a major sell-off on Monday, with the pairing relinquishing around a cent as the continued strength of oil prices helped the ‘Loonie’ (CAD) offset the thin-trading volumes prompted by the Victoria Day holiday.
GBP/AUD Exchange Rate Plunges as Cooling Trade Tensions Bolster Risk Appetite
The Pound Australian Dollar (GBP/AUD) exchange rate nosedived over a cent at the start of this week’s session as the announcement of a US-China trade truce and consequent rise in commodity prices prompted markets to go ‘risk on’.
GBP/NZD Exchange Rate Weakened by Surge in Risk Sentiment
The Pound New Zealand Dollar (GBP/NZD) exchange rate painted a similar picture to its antipodean cousin yesterday, with the ‘Kiwi’ also enjoying significant gains as US-China trade tensions cooled.