Pound Sterling (GBP) Exchange Rate Buoyed by Brexit Optimism
Trade in the Pound (GBP) remained robust throughout Wednesday’s session, with the currency striking a new weekly high on hopes that Theresa May’s direct involvement in Brexit talks will help to speed up the whole process.
Lending further support to GBP exchange rates were renewed hopes that the Bank of England (BoE) will raise interest rates next month, with markets pricing in an 80% chance of an August hike.
Looking ahead, barring any major Brexit developments, the absence of any UK data could leave Sterling struggling to find any momentum today.
GBP/EUR Exchange Rate Slides as US-EU Trade Tensions Ease
The Pound Euro (GBP/EUR) exchange rate fell back on Wednesday evening as fears of a potential trade war between the EU and US began to ease.
This came in the wake of a meeting between US President Trump and EC President Jean-Claude Juncker, in which the two announced they would work together towards ‘zero’ tariffs.
Looking ahead to today’s session, the Euro could see some considerable movement as the European Central Bank (ECB) holds its latest policy meeting, with a cautious outlook from the bank likely to drive the single currency lower.
GBP/USD Exchange Rate Rises as Trade Optimism Weakens Safe-Haven Demand
The Pound US Dollar (GBP/USD) exchange rate strengthened on Wednesday, rising to its highest levels in over a week as the relief over EU-US trade saw safe-haven demand finally begin to ease.
Also weakening the US Dollar was the release of the latest US housing figures, with new home sales slowing more than expected in June.
Economists are forecasting a strong rebound in today’s Durable Goods orders data, potentially driving significant gains in the US Dollar if June’s figures meet expectations.
GBP/CAD Exchange Rate Slides as Crude Ticks Up
The Pound Canadian Dollar (GBP/CAD) exchange rate tumbled by over half a cent on Wednesday as the commodity-sensitive ‘Loonie’ pushed higher thanks to another upswing in oil prices following a slump in US crude inventories.
GBP/AUD Exchange Rate Advances as Australian Inflation Comes up Short
The Pound Australian Dollar (GBP/AUD) exchange rate held strong throughout Wednesday’s session, with the ‘Aussie’ struggling to find its feet again following the publication of some weaker-than-expected domestic inflation figures at the very start of the session.
GBP/NZD Exchange Rate Dips as Commodity Prices Rise
The Pound New Zealand Dollar (GBP/NZD) exchange rate trended lower during yesterday’s session, with a broad lift in commodity prices bolstering market risk-appetite and driving demand for the high-yield ‘Kiwi’.