Pound Sterling (GBP) Exchange Rates Muted Following Brexit Setback
Trade in the Pound (GBP) remained largely flat at the end of last week’s session as markets reflected on EU Brexit negotiator Michel Barnier’s rejection of Theresa May’s customs proposals.
The decision is quite a setback in Brexit talks, dampening hopes that they may be wrapped up by October, as suggested by Brexit secretary Dominic Raab.
Today will see the Bank of England (BoE) publish the UK’s latest mortgage figures, with the Pound potentially strengthening should home loan approvals have risen in-line with expectations in June.
GBP/EUR Exchange Rate Stable as French GDP Disappoints
The Pound Euro (GBP/EUR) exchange rate held steady on Friday, closing the week slightly higher as the Euro struggled to recoup its losses from earlier in the week following some weak GDP figures from France.
EUR investors were left disappointed as Europe’s second-largest economy expanded only 0.2% in the second quarter, falling short of expectations of 0.3% growth.
The Euro may find some support at the start of this week’s session however, with a robust inflation reading from Germany likely to reflect well on the single currency.
GBP/USD Exchange Rate Rallies despite Surge in US GDP
After falling close to a one-week low on Friday morning, the Pound US Dollar (GBP/USD) exchange rate managed to rally by the close of the week’s session.
This came despite a notable jump in US GDP, with the latest estimate suggesting the US economy grew an impressive 4.1% in the second quarter.
However with analysts expressing doubts that this level of growth could be sustained, the data failed to translate into gains for the US Dollar.
GBP/CAD Exchange Rate Stabilises as NAFTA Optimism Rises
The Pound Canadian Dollar (GBP/CAD) exchange rate trended narrowly at the end of last week’s session as easing trans-Atlantic trade tensions helped to bolster hopes for progress in NAFTA negotiations.
GBP/AUD Exchange Rate Slumps Following Drop in US Dollar
The Pound Australian Dollar (GBP/AUD) exchange rate tumbled by around half a cent on Friday, closing the session almost unchanged from the start of the week as the modest drop in the US Dollar helped to bolster the appeal of the ‘Aussie’.
GBP/NZD Exchange Rate Slides as Risk Appetite Rises
The Pound New Zealand Dollar (GBP/NZD) exchange rate told a similar story to GBP/AUD at the end of last week, with a dip in USD helping to lift risk appetite and strengthen the ‘Kiwi’.