Pound Sterling Exchange Rate News: GBP Tumbles as Barnier Rejects Brexit Backstop Proposals

Pound Sterling (GBP) Exchange Rate Pressured by Barnier’s Criticism of Brexit Proposals

Pound Sterling (GBP) was forced to end last week’s session on a bit of a down as the currency was undermined by comments from EU Brexit Negotiator, Michel Barnier.

In another blow to the UK’s Brexit position, Barnier told journalists that he rejects Theresa May’s proposal for the UK to stay within the EU customs Union past 2021 if a new customs arrangement is not agreed.

Barnier suggested the proposals would only apply to Northern Ireland and took a swipe at May by insisting that ‘backstop means backstop’.

Looking ahead the Pound may also struggle at the start of this week’s session as economists forecast data will reveal that the UK’s industrial production remained subdued in April.

GBP/EUR Exchange Rate Steady as German Production Figures Disappoint

The Pound Euro (GBP/EUR) exchange rate was prevented from retreating on Friday as the Euro faced its own setback in the form of Germany’s latest industrial production figures.

EUR investors were left disappointed on Friday as German factory output unexpectedly contracted in April, adding further evidence that the Eurozone’s largest economy will not have sprung back in the second quarter as hoped.

GBP/USD Exchange Rate Dips in Run Up to Fed Rate Hike

The Pound US Dollar (GBP/USD) exchange rate trended lower at the end of last week’s session as the US Dollar firmed in the run up to the Federal Reserve’s expected rate hike on Wednesday.

Also helping to drive demand for USD was Trump’s rhetoric ahead of the G7 summit, with investors flocking to safe-haven currencies on fears his increasingly antagonistic tone could lead to further trade tensions.

GBP/CAD Exchange Rate Tumbles Following Ontario Election

The Pound Canadian Dollar (GBP/CAD) exchange rate also fell back on Friday, as the conservatives swept to power in Ontario, with markets hoping that the new government will adopt a pro-business stance.

However slightly dampening the ‘Loonie’s gains was the release of Canada’s latest labour figures, with employment shrinking for the second consecutive month in May.

GBP/AUD Exchange Rate lifted by Global Trade Concerns

The Pound Australian Dollar (GBP/AUD) exchange rate is edging higher this morning as the ‘Aussie’ was knocked at the start of this week’s session by fears of a trade rift between the US and its allies following a contentious G7 summit.

GBP/NZD Exchange Rate Jumps as Trump Rails against G7 Trade Statement

The Pound New Zealand Dollar (GBP/NZD) exchange rate is also ticking higher at the start of this week as the Asian trade session saw the ‘Kiwi’ falter on fears Trump’s spat with other leaders could lead to a global trade war.

Luke Trevail

Luke studied Journalism at university but quickly moved into the financial sector, initially working in retail banking before joining TorFX in 2007. As a Senior Account Manager Luke assists in overseeing the management of the company’s exposure to currency volatility. He uses his years of foreign exchange experience to produce regular news updates exploring the latest currency movements.

Contact Luke Trevail