Pound Sterling (GBP) Exchange Rate Firms as Carney Talks up Rate Expectations
The Pound (GBP) fluctuated against the majority of its peers on Wednesday, with sentiment dipping early in the morning as Brexit jitters continued to hamper the currency.
However Sterling was able to close the day out near to where it began, with an upbeat speech from Bank of England Governor, Mark Carney, helping to reinforce bets of an August rate hike.
GBP/EUR Exchange Rate Muted on Speculation of an Earlier ECB Rate Hike
The Pound Euro (GBP/EUR) exchange rate traded in a narrow range during yesterday’s session as reports emerged suggesting that the European Central Bank (ECB) is split over when exactly to begin raising interest rates next year.
While comments from ECB President Mario Draghi had previously hinted towards a hike near the end of the year, sources within the bank told Reuters that some policymakers may be pushing for a hike around July.
GBP/USD Exchange Rate Slumps as Safe Haven Demand Surges
The Pound US Dollar (GBP/USD) exchange rate tumbled on Wednesday with the ‘Greenback’ being buoyed by strong demand for safe-haven currencies.
This came as the US pushed forward with plans to implement further tariffs on Chinese goods, with vows from Beijing to respond blow-for-blow driving fears that the two nations are coming dangerously close to the point of no return.
Looking ahead the US Dollar may press higher today with the release of the latest US CPI figures, with USD investors hopeful that an uptick in inflation in June will place more pressure on the Federal Reserve to tighten its monetary policy.
GBP/CAD Exchange Rate Volatile as BoC Pushes Forward with Rate Hike
The Pound Canadian Dollar (GBP/CAD) exchange rate slumped over half a cent yesterday afternoon in the wake of the Bank of Canada’s latest policy meeting.
While the BoC’s decision to raise interest rates had been largely priced in by markets, the bank’s warning that rates may continue to climb came as a welcome surprise to CAD investors, many of whom had expected trade war fears to prompt a more dovish outlook from policymakers.
However, the GBP/CAD exchange rate rebounded later in the evening following a sharp drop in oil prices.
GBP/AUD Exchange Rate Jumps as US Clashes with China over Trade Tariffs
The Pound Australian Dollar (GBP/AUD) exchange rate climbed over half a cent on Wednesday, with markets shunning risk sensitive currencies, such as the ‘Aussie’, following a marked rise in trade tensions.
GBP/NZD Exchange Rate Surges as Trade War Fears Grow
The Pound New Zealand Dollar (GBP/NZD) exchange rate painted a similar picture to GBP/AUD yesterday, with fears of a potential trade war between the US and China clipping market risk appetite.