Pound Sterling Exchange Rate News: GBP Hit by New Brexit Crisis as Davis and Johnson Resign

Pound Sterling (GBP) Exchange Rate Volatile Following Cabinet Resignations

The Pound (GBP) surged against the majority of its peers on Monday morning as markets reacted to the sudden resignation of Brexit Secretary David Davis.

Davis quit in protest over the UK government’s recently agreed Brexit plan, stating he did not ‘believe’ in Theresa May’s proposals, with many GBP investors hoping his exit would reduce calls for a hard Brexit from within government.

However the Pound was rocked later in the afternoon as Davis’ resignation was followed by Foreign Secretary, Boris Johnson, fueling speculation of a possible leadership challenge.

Looking forward the Pound may look to rally again on Tuesday, with an expected upswing in the UK’s latest industrial production figures potentially strengthening Sterling sentiment.

GBP/EUR Exchange Rate Slides on Carney Speech

The Pound Euro (GBP/EUR) exchange rate advanced nearly half a cent at the start Monday’s session, with a slight dip in Germany’s trade surplus leaving the single currency exposed to Sterling’s gains.

However the Euro rallied towards the end of the day, as comments by European Central Bank (ECB) President, Mario Draghi were seen as broadly upbeat, despite his renewed insistence that interest rates would remain on hold until at least summer 2019.

GBP/USD Exchange Rate Briefly Jumps as US Jobs Figures Continue to Drag on the Dollar

The Pound US Dollar (GBP/USD) exchange rate briefly struck a three-week high at the start of this week’s session as the ‘Greenback’ remained subdued following Friday’s jobs report.

The US Dollar also remained muted on Monday as markets rushed to pick up high-yield currencies such as the Australian Dollar (AUD) following the rebound in Chinese financial markets.

However these factors were not enough to prevent the US Dollar from rallying later in the day as the Pound was struck by political turmoil in the UK.

GBP/CAD Exchange Rate Flat in Run up to BoC Rate Decision

The Pound Canadian Dollar (GBP/CAD) exchange rate closed yesterday virtually unmoved, with the ‘Loonie’ entering a holding pattern ahead of the Bank of Canada’s (BoC) policy meeting on Wednesday.

The BoC is widely expected to raise interest rates this week, but it remains to be seen whether it will be supportive of further hikes down the line, with the potential for a dovish outlook a concern for CAD investors.

GBP/AUD Exchange Rate Nosedives as Investor Confidence Surges

The Pound Australian Dollar (GBP/AUD) exchange rate plummeted by almost two cents on Monday, with the ‘Aussie’ invigorated by a new-found confidence in investors, helping it to surge against Sterling as it was struck by Brexit woes.

GBP/NZD Exchange Rate Remains Flat as Risk Appetite Jumps

The Pound New Zealand Dollar (GBP/NZD) exchange rate traded in a narrow range on Monday, with the ‘Kiwi’ finding some solid support thanks to the dip in the US Dollar and subsequent jump in market risk sentiment.

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