Pound Sterling (GBP) Exchange Rates Tumble as BCC Cuts UK Growth Forecasts
Pound Sterling (GBP) exchange rates opened this week’s session on a poor footing, sliding against the majority of peers as markets reacted the latest growth forecasts from the British Chambers of Commerce (BCC).
The BCC warns that uncertainty is likely to have dragged on UK growth this year, leading its economists to downgrade this year’s forecasts to 1.3%, which if correct would be the UK’s slowest pace of growth since the financial crisis.
GBP/EUR Exchange Rate Slides as Euro Recovery Continues
The Pound Euro (GBP/EUR) exchange rate tumbled on Monday, falling around 0.2% as the Euro (EUR) continued to recover from last week’s sharp selloff.
However slightly capping the single currency’s gains were concerns that a dispute in Germany’s ruling coalition over the country’s asylum policy could tear Angela Merkel’s government apart.
GBP/USD Exchange Rate Slumps as Trade War Concerns Accelerate
The Pound US Dollar (GBP/USD) exchange rate slumped closed to an eight-month low on Monday, with markets initially optimistic that the US would avoid a full-blown trade war with China.
However while they felt a trade war may have been adverted, tensions were ratcheted up again on Tuesday morning as US President Donald Trump announced a further $200bn of tariffs on Chinese imports, with the growing risk aversion prompting investors to flock to the safe-harbour of USD.
GBP/CAD Exchange Rate Tumbles as Oil Prices Jump
The Pound Canadian Dollar (GBP/CAD) exchange rate slumped by over a cent at the start of this week’s session, with investors flocking to the crude-correlated ‘Loonie’ as oil prices jumped by 1% on Monday.
The upswing in prices saw Brent crude touch $74.18 a barrel, as the commodity strengthened ahead of an OPEC meeting later this week.
GBP/AUD Exchange Rate Surges as RBA Minutes Disappoint
The Pound Australian Dollar (GBP/AUD) exchange rate raced higher overnight on Monday, with the pairing striking a new one-month high as markets reacted to the minutes from the Reserve Bank of Australia’s latest policy meeting.
The ‘Aussie’ plummeted during the Asian session as markets interpreted the minutes as being more dovish than in previous months.
GBP/NZD Exchange Rate Climbs on Trade Concerns
After initially stumbling on Monday, the Pound New Zealand Dollar (GBP/NZD) exchange rate was able to rally overnight as Trump threatened to place further tariffs on China.
Looking ahead the ‘Kiwi’ may face further weakness this afternoon if the latest Global Dairy Auction results in another slide in prices.