Pound Sterling (GBP) Exchange Rate Lifted by Brexit Optimism
The Pound (GBP) climbed higher on Tuesday, with the currency being bolstered as Theresa May announced she would now be taking personal control of EU withdrawal negotiations.
New Brexit Secretary Dominic Raab will now ‘deputise’ the PM in talks with the EU, with markets welcoming the news on hopes it will lead to a ‘softer’ Brexit.
The GBP exchange rate may fall back during today’s session however with the CBI’s distributive trades index, expected to show retail activity slowed in the UK this month.
GBP/EUR Exchange Rate Advances as Eurozone Slows
The Pound Euro (GBP/EUR) exchange rate ticked higher on Tuesday as the Eurozone’s latest PMI figures dragged on the single currency.
July’s preliminary report suggests activity in the private sector slowed this month, with concerns over a potential trade war leading to a deterioration in business optimism.
Wednesday may see the Euro extend these losses if Germany’s latest business climate index reinforces this gloomy outlook from firms.
GBP/USD Exchange Rate Jumps as IMF Suggests USD is Overvalued
The Pound US Dollar (GBP/USD) exchange rate rallied yesterday, climbing over half a cent as the International Monetary Fund (IMF) suggested that the US Dollar is currently overvalued.
This saw investors begin to shun the ‘Greenback’ as the IMF report stated that medium-term fundamentals indicated that the currency was overvalued by between 8% and 16%.
Looking ahead the US Dollar may pull back today as US economic data looks set to reveal new home sales slowed in June.
GBP/CAD Exchange Rate Muted as Oil Prices Skyrocket
The Pound Canadian Dollar (GBP/CAD) exchange rate remained range bound on Tuesday, with the ‘Loonie’ seeing off any advances by Sterling as it was buoyed by a sharp rise in oil prices.
This saw WTI Crude rising over 1% as markets continued to speculate on the possibly that a spat between the US and Iran could disrupt global supplies.
GBP/AUD Exchange Rate Jumps as Australian Inflation Misses
The Pound Australian Dollar (GBP/AUD) exchange rate soared higher overnight on Tuesday as Australia’s latest CPI figures came in below expectations, with inflation only rising to 2.1% in the second quarter, falling short of forecasts it would reach 2.2%.
GBP/NZD Exchange Rate Bolstered by Weak NZ Trade Figures
The Pound New Zealand Dollar (GBP/NZD) exchange rate appreciated by around half a cent overnight on Tuesday, with the ‘Kiwi’ stumbling as New Zealand’s trade balance revealed a shock trade deficit in June.