Pound Sterling (GBP) Exchange Rates Advance as Construction Activity Strengthens
The Pound (GBP) appreciated against many of its peers on Tuesday as GBP investors welcomed a surprise lift in the UK’s latest construction PMI.
IHS Markit reported that the index climbed to 53.1 in June, with construction growth striking a seven-month high and bolstering hopes of a strong rebound in UK GDP in the second quarter.
All eyes will now be on today’s Services PMI, with a solid result likely to propel Sterling upwards, especially in the absence of any other impactful data on Wednesday.
GBP/EUR Exchange Rate Advances as Retail Sales Disappoint
After sliding late on Monday, the Pound Euro (GBP/EUR) exchange rate broke back above €1.13 yesterday, with the single currency being undermined by the Eurozone’s latest retail sales figures.
Data published by Eurostat revealed that Eurozone sales growth stalled in May, after April’s figures were revised down to 0.1%. This was a somewhat puzzling outcome considering falling unemployment and rising wages would normally support increased sales.
GBP/USD Exchange Rate Climbs, Profit Taking and Q3 Doubts Blamed
The Pound US Dollar (GBP/USD) exchange rate ticked up over half a cent on Tuesday morning, with the pairing recouping much of the losses made at the start of the week.
Analysts attributed this fall to a bout of profit taking and concerns that the US Dollar may begin to fall off in the third quarter after its meteoric rise in Q2.
However the ‘Greenback’ was able to claw back some of its losses later in the day as USD investors welcomed a surprise rise in US factory orders in May.
Upswing in Oil Prices Leaves GBP/CAD Exchange Rate Muted
The Pound Canadian Dollar (GBP/CAD) exchange rate traded in a narrow range on Tuesday, with the ‘Loonie’ offsetting Sterling’s gains thanks to a strong lift in oil prices as supply concerns sent Brent Crude soaring 1.38% to $78.40 a barrel.
GBP/AUD Exchange Rate Tumbles Following a Rebound in the Chinese Yuan (CHY)
The Pound Australian Dollar (GBP/AUD) exchange rate slumped on Tuesday, falling around a cent as a strong rebound in the Chinese Yuan (CHY) helped to buoy sentiment in the ‘Aussie’.
The Australian Dollar was then lifted further overnight on Tuesday as Australia’s services sector was reported to have expanded at its fastest pace on record in June.
Sharp Drop in Dairy Prices Limits GBP/NZD Exchange Rate Losses
The Pound New Zealand Dollar (GBP/NZD) exchange rate was also pressured yesterday thanks to the reversal in the Yuan, although the ‘Kiwi’s advance was clipped later in the afternoon following a sharp drop in dairy prices at the latest auction, revealing a 5% fall.