Pound Sterling (GBP) Exchange Rate Steadies on BoE Optimism
After surging higher on Thursday the Pound (GBP) was able to close Friday’s session on a solid footing, thanks to growing expectations that the Bank of England (BoE) could be targeting an August rate hike.
While analysts continued to urge caution, with some warning that Brexit risks could still unwind any plans for a hike, it was not enough to dent Sterling sentiment, allowing the UK currency to close the week’s session slightly up against the majority of its peers.
GBP/EUR Exchange Rate Slumps as Eurozone PMI figures Beat Expectations
The Pound Euro (GBP/EUR) exchange rate traded lower at the very end of last week, with EUR investors welcoming a slight uptick in the Eurozone’s private sector growth.
Markit reported that the Eurozone’s latest Purchasing Managers Index ticked up from 54.1 to 54.8 in June, beating forecasts it would see a modest drop to 53.9.
Looking ahead the Euro could struggle at the start of this week’s session, with economists forecasting that global trade tensions could see Germany’s business confidence slide in June.
GBP/USD Exchange Rate Strengths as US Dollar Undermined by Profit Taking
The Pound US Dollar (GBP/USD) exchange rate advanced by nearly 0.4% on Friday, with the pairing extending the gains found on Thursday to close the week marginally higher.
This extra lift in the pairing appeared to be largely driven by a pullback in the US Dollar, with investors seeking to book their profits amid calls that the currency was moving into overbought territory.
GBP/CAD Exchange Rate Surges as Canadian Retail Sales Plummet
The Pound Canadian Dollar (GBP/CAD) exchange rate neared a new two-month high at the end of the last session, with the ‘Loonie’ forced to extend its losses as it was undermined by a shock contraction in Canadian retail sales in April.
GBP/AUD Exchange Rate Plummets as Commodity Prices Soar
The Pound Australian Dollar (GBP/AUD) exchange rate depreciated rapidly at the end of last week, with the pairing relinquishing much of Thursday’s BoE led gains as demand for the ‘Aussie’ was bolstered by surging commodity prices.
GBP/NZD Exchange Rate Lifted by Rising Risk Appetite
The Pound New Zealand Dollar (GBP/NZD) exchange rate painted a similar picture to GBP/AUD on Friday as a spike in commodity prices strengthened market risk appetite, driving demand for the ‘Kiwi’.