Pound Sterling (GBP) Exchange Rate Jumps on Upbeat Services PMI
The Pound (GBP) exchange rate climbed higher against the majority of its peers on Tuesday as a better-than-expected UK Services PMI provided some much needed relief to Sterling.
IHS Markit reported the UK services index jumped up from 52.8 to 54.0 last month, capping off a robust expansion across the UK private sector in May.
This has in turn bolstered optimism that the door may still be open for the Bank of England (BoE) to target a rate hike later in the year.
GBP/EUR Exchange Rate Jumps as Eurozone Data Disappoints
The rally in the Pound Euro (GBP/EUR) exchange rate was helped along on Tuesday by a smattering of disappointing Eurozone data.
This started with the final reading of last month’s PMI figures which confirmed the bloc’s private sector slowed to an 18-month low.
This was then accompanied by the Eurozone’s latest retail sales figures, which revealed sales growth was weaker than expected in April, further denting the appeal of the Euro (EUR)
GBP/USD Exchange Rate Holds Steady as US Service Sector Rebounds
After initially surging higher, the Pound US Dollar (GBP/USD) exchange rate ended yesterday’s session close to its opening levels as the US published its own service sector growth figures.
The ISM non-manufacturing PMI was revealed to have leapt from 56.8 to 58.6 in May, outpacing forecasts of a rise to 57.5 and bolstering Federal Reserve rate hike expectations.
Looking ahead the US Dollar (USD) may be also be bolstered by the latest US trade balance, with the US trade deficit forecast to hold at a six-month low.
GBP/CAD Exchange Rate Skyrockets as Oil Prices, NAFTA Optimism Slide
The Pound Canadian Dollar (GBP/CAD) exchange rate rocketed up by almost 1% on Tuesday, while striking a new two-week high as the ‘Loonie’ was pressured by a sharp fall in oil prices, with the Brent crude benchmark sliding to $74.24 a barrel.
Further weakening the appeal of the Canadian Dollar (CAD) was the increased speculation that the US may pull out of the NAFTA trade agreement with Mexico and Canada as trade tensions grow following the US government’s decision to implement tariffs on steel and aluminium imports.
GBP/AUD Exchange Rate Retreats as Australian GDP Beats Forecasts
After ticking higher on Tuesday, the Pound Australian Dollar (GBP/AUD) exchange rate began to retreat again overnight following the release of some better-than-expected Australian GDP figures.
According to the Australian Bureau of Statistics (ABS), domestic growth rose by 1% in the first quarter of 2018, up from 0.5% in the previous quarter and beating forecasts of a 0.9% increase.
GBP/NZD Exchange Rate Advances as Dairy Prices Tumble
The Pound New Zealand Dollar (GBP/NZD) exchange rate rallied by nearly a cent during yesterday’s session, with the ‘Kiwi’ struggling to fend off Sterling’s advances as it was undermined by a decline in prices at the latest Global Dairy Auction.