Pound Sterling (GBP) Exchange Rate Strengthens as Services PMI Bolsters BoE Rate Expectations
The Pound (GBP) found itself on a solid footing on Wednesday as markets welcomed the release of the UK’s latest Services PMI.
The index revealed activity in the UK’s all-important service sector expanded at a faster-than-expected pace in June, with growth striking a new eight-month high as the sunny weather helped to bolster consumer spending.
This helped to close out the second quarter on a high note, with analysts suggesting it will leave the door open for the Bank of England to target a rate hike in August.
GBP/EUR Exchange Rate Strengthens as Eurozone PMI Reveals Gloomy Outlook
The Pound Euro (GBP/EUR) exchange rate posted some solid gains during yesterday’s session, with the Eurozone’s own PMI figures failing to lend support to the single currency.
While the PMI figures saw growth in the bloc’s private sector accelerated for the first time since January, EUR investors were left wary by reports that the outlook amongst firms is becoming increasingly gloomy in the face of political and trade uncertainty.
However, the single currency was able to bounce back overnight with reports suggesting that the European Central Bank may be willing to raise interest rates a little earlier than first thought.
GBP/USD Exchange Rate Flat as Trade Tensions Mount
The Pound US Dollar (GBP/USD) exchange rate traded in a narrow range on Wednesday, with Sterling left to consolidate Tuesday’s gains as rising trade tensions helped to bolster demand for the ‘Greenback’.
Markets became increasingly uneasy as they braced for the introduction of tariffs on $68bn worth of goods between the US and China later in the week.
However Thursday’s session may see some considerable movement in the US Dollar, with an uptick in either the ISM non-manufacturing PMI or ADP employment figures likely to send the currency shooting higher.
GBP/CAD Exchange Rate Muted as Markets Eye Potential BoC Rate Hike
The Pound Canadian Dollar (GBP/CAD) exchange rate continued to hold steady on Wednesday, with the ‘Loonie’ seeing off Sterling’s attempts to advance as it was supported by expectations that the Bank of Canada (BoC) is set to raise interest rates next month.
GBP/AUD Exchange Rate Rallies as Trade Concerns Drag on the ‘Aussie’
The Pound Australian Dollar (GBP/AUD) exchange rate advanced over a cent on Wednesday, with the pairing rallying throughout the session as markets became increasingly spooked by the potential for the US and China to spark a global trade war.
GBP/NZD Exchange Rate Advances as Risk Appetite Diminishes
The Pound New Zealand Dollar (GBP/NZD) exchange rate told a similar story to GBP/AUD on Wednesday, with the ‘Kiwi’ falling back as trade concerns and the rising US Dollar (USD) slashed market risk appetite.