Pound Sterling (GBP) Exchange Rate Nosedives as UK Data Disappoints
Pound Sterling (GBP) started this week’s session on a sour note as some weak trade and production figures weighed heavily on the currency.
GBP faltered on Monday morning as the Office for National Statistics (ONS), reported the UK’s trade deficit swelled to -£3.22bn to -£5.28bn in April, disappointing those who had expected it to narrow to -£2.5bn.
However it was the accompanying production figures which proved the most damaging to the Pound as factory output growth slumped from 0.1% to -0.8%, against forecasts of a slight uptick to 0.2%.
Sterling may have a chance to redeem itself later today however if the UK’s latest labour figures reveal an uptick in wage growth at the start of the second quarter.
GBP/EUR Exchange Rate Slides as Italy Remains Committed to the Euro
The Pound Euro (GBP/EUR) exchange rate saw the largest losses of any Sterling pairing on Monday as the single currency was buoyed by comments from Italy.
These comments came from new Italian Finance Minister, Giovanni Tria who, in his first official interview, ruled out any possibility of the new coalition government dumping the Euro and returning to the Lira as some markets had feared.
GBP/USD Exchange Rate Muted as Markets Await Fed Rate Hike
While the Pound US Dollar (GBP/USD) exchange rate was placed on the back foot on Monday, the pairing losses were limited somewhat by investors’ reluctance to alter their positions on the US currency.
This comes in advance of an expected rate hike from the Federal Reserve later this week, with markets waiting to see how many more hikes the Fed may be willing to commit to in the second half of 2018.
GBP/CAD Exchange Rate Jumps as Trump Puts Pressure on Canada over Trade
The Pound Canadian Dollar (GBP/CAD) exchange rate was the only major Sterling pairing to show any positive movement on Monday, as the ‘Loonie’ was met by significant pressure following the G7 summit over the weekend.
This drop in CAD was mostly driven by a string of angry tweets from President Trump in which he accused Canadian PM Justin Trudeau of being ‘very dishonest and weak’ as he railed against ‘unfair’ trade against the US.
GBP/AUD Exchange Rate Tumbles as Markets Welcome US-North Korea Summit
The Pound Australian Dollar (GBP/AUD) exchange rate trended lower overnight on Monday as the summit between Donald Trump and Kim Jong-un appeared to go off without a hitch, much to the relief of regional investors.
GBP/NZD Exchange Rate Pressured by Rising Risk Appetite
The Pound New Zealand Dollar (GBP/NZD) exchange rate tumbled at the start of this week’s session as market risk appetite crept up ahead of the Fed policy meeting later in the week, translating into increased demand for the ‘Kiwi’.