Davis Resignation Rocks Government after Brexit Disagreement: Pound Sterling (GBP) Exchange Rate News

Pound Sterling (GBP) Exchange Rate Surges on Brexit Blueprint Deal

The Pound (GBP) rallied against the majority of its peers at the end of last week, with markets welcoming the news that Theresa May’s Cabinet had agreed to her plans for leaving the EU following a crunch meeting at Chequers.

The blueprint will see the government seek to create a UK – EU ‘free trade area’ which ‘establishes a common rule book for industrial goods and agricultural products’; a softening of the government’s previous plans.

However some of this positive sentiment could be undone today, with the shock resignation of Brexit Secretary David Davis over his criticism of the plan, leading to another rise in uncertainty.

GBP/EUR Exchange Rate Fluctuates as German Factory Output Soars

The Pound Euro (GBP/EUR) exchange rate was met by volatility on Friday as the single currency found support from the release of Germany’s latest Industrial production figures.

Germany’s economics ministry reported factory output soared by 2.6% in June, a sharp reversal from the 1.3% contraction seen in May, sailing past forecasts of a modest expansions of 0.3%.

GBP/USD Exchange Rate Jumps as US Jobs Figures Disappoint

The Pound US Dollar (GBP/USD) exchange rate jumped at the end of last week’s session, with Sterling’s weakness more than offset by the ‘Greenback’s losses in the wake of the latest US labour report.

June’s report saw the US unemployment rate unexpectedly jump from 3.8% to 4%, while hourly earnings only rose 0.2%, missing expectations of a 0.3% rise.

This left USD investors dejected, with suggestions it will take some of the pressure off the Federal Reserve to raise interest rates.

GBP/CAD Exchange Rate Lifted by Weak Labour Report, Drop in Oil Prices

The Pound Canadian Dollar (GBP/CAD) exchange rate jumped by around half a cent on Friday, with a disappointing rise in Canada’s unemployment rate dragging on the ‘Loonie’

The Canadian Dollar was further weakened by a downturn in oil prices, with Brent crude, falling around 1% to $76.71 a barrel.

GBP/AUD Exchange Rate Stumbles as US Jobs Data Weakens

The Pound Australian Dollar (GBP/AUD) exchange rate tumbled on Friday, with demand for the ‘Aussie’ jumping in the wake of the US Dollar’s losses following the labour figures.

However the AUD exchange rate may fall back again overnight should ongoing trade war concerns lead to a drop in Australia’s latest business confidence figures.

GBP/NZD Exchange Rate Tumbles as Risk Sentiment Rises

The Pound New Zealand Dollar (GBP/NZD) exchange rate told a similar story to its Australian counterpart on Friday, with a rise in market risk appetite following the drop in USD helping to propel the ‘Kiwi’ higher.

Luke Trevail

Luke studied Journalism at university but quickly moved into the financial sector, initially working in retail banking before joining TorFX in 2007. As a Senior Account Manager Luke assists in overseeing the management of the company’s exposure to currency volatility. He uses his years of foreign exchange experience to produce regular news updates exploring the latest currency movements.

Contact Luke Trevail