Pound Sterling (GBP) Exchange Rate Slides as UK Government Faces Brexit Setback
The Pound Sterling (GBP) exchange rate tumbled on Tuesday, with the UK currency weakening against the majority of its peers after the government faced a setback in passing its EU Withdrawal Bill.
Sterling sentiment fell as the House of Lords overwhelming voted to amend the bill – voted up by the House of Commons last week – to give Parliament a greater say on any final Brexit deal agreed with the EU.
This means Theresa May will now face a second vote in the Commons, a worrying prospect for GBP investors given that she only narrowly managed to get it passed the first time.
GBP/EUR Exchange Rate Muted as Draghi Urges Patience on Interest Rates
The Pound Euro (GBP/EUR) exchange rate traded in a narrow range yesterday, with the single currency being pressured by Mario Draghi’s commitment to leaving rates on hold for the foreseeable future.
Speaking in Portugal yesterday, the European Central Bank (ECB) President reiterated his pledge to leave interest rates unchanged until at least the summer of 2019, suggesting that the bank would ‘remain patient in determining the timing of the first-rate rise.’
GBP/USD Exchange Rate Plummets as Trade Concerns Drive Investors to the US Dollar
The Pound US Dollar (GBP/USD) exchange rate fell heavily on Tuesday, following threats by Donald Trump to impose further tariffs on China.
Trump warned that the US government was prepare to slap tariffs on a further $200bn of Chinese goods, in the latest move in a tit-for-tat trade dispute between the two countries.
Suggestions that the world’s two largest economies are edging towards a full-blown trade war unsurprisingly spooked markets, causing investors to flock to the US Dollar (USD) due to its perceived status as a ‘safe haven’ asset.
GBP/CAD Exchange Rate Fluctuates, Trade Uncertainty Takes Hold
The Pound Canadian Dollar (GBP/CAD) exchange rate was met by considerable volatility yesterday, with the combination of trade uncertainty and fluctuating oil prices prompting some major movement in the pairing.
GBP/AUD Exchange Rate Volatile as Risk Sentiment Recedes
The Pound Australian Dollar (GBP/AUD) exchange rate also traded in a wide range on Tuesday, with the ‘Aussie’ seeing significant volatility as rising trade tensions between the US and China caused market risk appetite to sink.
GBP/NZD Exchange Rate Tumbles despite Drop in Dairy Prices
The Pound New Zealand Dollar (GBP/NZD) exchange rate retreated from a three-week high on Tuesday, with markets overlooking another decline in dairy prices as Brexit and trade uncertainty drove sentiment.