Pound Sterling (GBP) Exchange Rate Tumbles as Inflation Misses
The Pound (GBP) plummeted against the majority of its peers on Wednesday as markets reacted to the publication of the UK’s latest consumer price index.
The release prompted a sharp downturn in Sterling as it was revealed that the UK inflation rate failed to advance in May, holding at a one-year low of 2.4% rather than rising to 2.5% as most economists had forecast.
This was a major disappointment to GBP investors as it was seen as further denting the chances of the Bank of England (BoE) raising interest rates later this year.
GBP/EUR Exchange Rate Slumps in Advance of ECB Meeting
The Pound Euro (GBP/EUR) exchange rate slumped on Wednesday, with a sharp contraction in Eurozone industrial production doing little to dent the Euro (EUR) in advance of today’s European Central Bank (ECB) rate decision.
The bank has hinted this month’s meeting could see policymakers finally begin discussions about when it will end its quantitative easing programme, with the EUR exchange rate likely to surge if the ECB looks to wind down its bond purchases by the end of 2018.
GBP/USD Exchange Rate Rallies after Fed Rate Hike
The Pound US Dollar (GBP/USD) exchange rate rallied late on Wednesday, advancing by around half a cent following the Federal Reserve’s latest policy meeting.
The upswing in GBP/USD came despite a hawkish meeting in which the bank voted to raise interest rates and signalled that two more rate hikes would be expected by the end of 2018.
Analysts suggest the downtrend in the US Dollar was due to markets having already priced in the rate hike as well as some profit taking ahead of the ECB meeting.
GBP/CAD Exchange Rate Slides despite Trade Concerns Weighing on the ‘Loonie’
The Pound Canadian Dollar (GBP/CAD) exchange rate tumbled by around a cent yesterday as the UK’s weak inflation figures saw the ‘Loonie’ recoup much of its losses against Sterling from earlier in the week.
However, against its other peers, the Canadian Dollar appeared significantly weaker, with markets continuing to express concerns regarding the apparent breakdown in trade relations between the US and Canada.
GBP/AUD Exchange Rate Surges Following Mixed Australian Labour Report
The Pound Australian Dollar (GBP/AUD) exchange rate leapt by around a cent overnight on Wednesday as markets reacted to a mixed labour report from Australia.
While markets welcomed a larger-than-expected drop in unemployment, the underlying figures proved to be less supportive of the ‘Aussie’ following a sharp drop in full-time employment.
GBP/NZD Exchange Rate Jumps as Trade Tensions Re-emerge
The Pound New Zealand Dollar (GBP/NZD) exchange rate swung higher late on Wednesday as fresh concerns over US-China trade tensions saw another downturn in market risk appetite.