Pound Sterling (GBP) Exchange Rate Volatile as Ramsden Raises Possibility of August Rate Hike
Trade in the Pound (GBP) was mixed on Thursday initially weakening in the morning on reports that Theresa May and David Davis met for crunch talks over Brexit.
However Sterling sentiment rebounded by the end of the day’s session as Bank of England Deputy, Dave Ramsden made a speech suggesting the UK’s economic slowdown at the start of 2018 was temporary.
This led to him hinting at the possibility of a rate hike later in the year should the UK economy rebound as expected.
GBP/EUR Exchange Rate Slides on ECB Stimulus Speculation
The Pound Euro (GBP/EUR) exchange rate stuck a new monthly low on Thursday as the single currency continued to be buoyed by speculation the European Central Bank (ECB) is to begin discussing its exit from its quantitative easing programme.
The prospect of the ECB taking its first steps towards normalising its monetary policy sparked considerable demand for the single currency
GBP/USD Exchange Rate Steady as Markets Express Concerns over G7 Summit
The Pound US Dollar (GBP/USD) exchange rate held fairly steady throughout yesterday’s session as a resurgent Euro (EUR), siphoned demand from the US currency.
Also hampering the US Dollar (USD) exchange rate were fears that President Trump is likely to stick with his hardline stance on trade at the G7 summit this weekend.
This could led to the US butting heads with other G7 members, including China, rekindling fears of a potential trade war hampering global growth in the coming months.
GBP/CAD Exchange Rate Advances as Poloz Warns of Trade Uncertainty
The Pound Canadian Dollar (GBP/CAD) exchange rate continued to push higher on Thursday, as Bank of Canada Governor, Stephen Poloz appeared pessimistic over the chance of there being another rate hike this year given the uncertain trade outlook.
Looking ahead the Canadian Dollar could strengthen this afternoon as Canada’s latest labour figures are expected to show a solid rebound in employment growth in May.
GBP/AUD Exchange Rate Surges as Commodity Currencies Suffer
Growing trade uncertainty also impacted the Pound Australian Dollar (GBP/AUD) exchange rate yesterday, with the ‘Aussie’ plummeting as markets become increasingly skittish ahead of the G7 summit.
GBP/NZD Exchange Rate Rises as Market Risk Appetite Recedes
The Pound New Zealand Dollar (GBP/NZD) exchange rate told a similar story to its antipodean cousin on Thursday, as declining risk appetite limited demand for the ‘Kiwi’.