Pound Sterling (GBP) Exchange Rates Steady as Markets Brace for EU Summit
The Pound (GBP) made little headway against its peers at the start of this week’s session as GBP investors kept their focus firmly on Brexit ahead of an EU summit later in the week.
The summit will hopefully see the UK outline its plans for a post-Brexit customs agreement with the EU, but many observers remain sceptical, which is dragging on Sterling sentiment.
Looking ahead the UK will publish its latest mortgage figures later this morning, although barring any major surprises its impact on the GBP exchange rate is expected to be limited.
GBP/EUR Exchange Rate Muted on Fears of a Trans-Atlantic Trade War
The Pound Euro (GBP/EUR) exchange rate traded in a narrow range on Monday with the single currency struggling to find any momentum due to escalating fears of a trans-Atlantic trade war.
The latest development in the trade dispute saw the iconic US motorcycle maker Harley-Davidson, announce its plans to shift some of its US production overseas in an effort to circumvent new EU tariffs, something which markets feared could prompt Trump to retaliate by pushing forward with his plans to implement tariffs on cars produced in the EU.
GBP/USD Exchange Rate Stable as Trade Concerns Drag on US Dollar
The Pound US Dollar (GBP/USD) exchange rate also remained broadly flat on Monday, with escalating trade concerns preventing the US Dollar (USD) from advancing against Sterling.
Adding to trade concerns for the EU were fears of escalating tensions between the US and China as the White House unveiled plans to curb Chinese investment in the US.
GBP/CAD Exchange Rate Surges as Oil Prices Plummet
The Pound Canadian Dollar (GBP/CAD) exchange rate trended higher at the start of this week’s session, with the oil-sensitive ‘Loonie’ tumbling as the Brent crude prices slumped 1.7% to $74.37 a barrel.
The drop came in the wake of the OPEC oil cartel’s decision to ease production cuts which have been in place for the better part of two years.
GBP/AUD Exchange Rate Jumps, Increased Trade Tensions Blamed
The Pound Australian Dollar (GBP/AUD) exchange rate jumped by around a cent on Monday, with the ‘Aussie’ falling heavily as trade tensions flared once again.
Analysts also warn that this trend may continue throughout the week, with a lull in domestic data offering little respite for AUD.
GBP/NZD Exchange Rate Soars on Trade War Fears
The Pound New Zealand Dollar (GBP/NZD) exchange rate also surged by around a cent at the start of the week, with the pairing striking a new one-month high as trade war fears weakened market risk appetite.