Pound Sterling (GBP) Exchange Rates Knocked as UK Retail Sales Slump
The Pound (GBP) has been stung by a string of soft domestic data this week; a trend which continued on Thursday with the publication of some weaker-than-expected retail sales figures.
June’s data revealed a shock contraction in sales growth as the hot weather and World Cup led to reduced footfall over the month.
The data was another blow to Sterling, with many analysts suggesting this could be the final nail in the coffin for hopes that the Bank of England (BoE) would raise interest rates in August.
It’s unlikely the Pound will find much support from today’s borrowing figures either, with economists forecasting the data will reveal the UK’s public deficit swelled again in June.
GBP/EUR Exchange Rate Plummets to 2018 Low
The Pound Euro (GBP/EUR) exchange rate fell to its lowest levels since last December on Thursday as doubts over a possible BoE rate hike next month began to cloud Sterling.
Meanwhile, despite a lull in domestic data, the Euro pushed higher during yesterday’s session, with a sharp downturn in the Chinese Yuan (CHY) lifting ‘safer’ currencies like EUR.
GBP/USD Exchange Rate Nosedives, US Dollar Soars as Chinese Yuan Falls
The Pound US Dollar (GBP/USD) exchange rate suffered another heavy sell-off yesterday, with the pairing falling below $1.30 for the first time in almost a year.
Aiding the ‘Greenback’s advance on Thursday was an influx of demand from traders following the sharp drop in CNY as well as a small boost from a stronger-than-expected manufacturing index from the Philadelphia Fed.
The US Dollar was forced to relinquish some ground later on however as President Trump suggested he was ‘not thrilled’ by recent rate hikes from the Federal Reserve.
Despite the slight dip yesterday this still leaves the US Dollar on track for its best week since April, something which could prompt a correction in the currency towards the end of the session if investors look to book profits.
GBP/CAD Exchange Rate Dips Ahead of Canadian Inflation Figures
The Pound Canadian Dollar (GBP/CAD) exchange rate edged lower during yesterday’s session as CAD investors took advantage of the broad-based weakness in Sterling.
However the ‘Loonie’s gains proved to be less dramatic than some of its peers, with markets apparently reluctant to position themselves too long in the currency ahead of the release of today’s Canadian inflation figures, despite expectations of an uptick in June.
GBP/AUD Exchange Rate Met by Volatility as Chinese Yuan Plummets
The Pound Australian Dollar (GBP/AUD) exchange rate fluctuated on Thursday as Australia’s extensive trading relationship with China initially drove the ‘Aussie’ lower in reaction to the devaluing of the Chinese Yuan.
However the AUD exchange rate recouped some ground later in the session as the fall in the US Dollar gave the ‘Aussie’ some breathing space.
GBP/NZD Exchange Rate Fluctuates on Mixed Risk Appetite
The Pound New Zealand Dollar (GBP/NZD) exchange rate told a similar story to its antipodean cousin on Thursday, with a lull in domestic data leaving movement in the ‘Kiwi’ to be largely dictated by shifts in risk sentiment.