Pound Sterling (GBP) Exchange Rates Stable as Mortgage Approvals Jump
The Pound (GBP) traded narrowly on Monday, with a welcome jump in mortgage approvals in June helping to stave off any losses.
Further aiding Sterling was the Europe Business Confidence figures, which revealed a notable improvement in sentiment in the UK last month.
Welcome news as #European Commission survey shows #UK #economic sentiment index up to 5-month high of 108.5 in July from 106.9 in June & low of 105.3 in March. #Consumer confidence up & increases for #industrial & #services sectors’ sentiment. But down for #retail & #construction
— Howard Archer (@HowardArcherUK) July 30, 2018
Meanwhile a lull in domestic data is likely to leave the Bank of England (BoE) in the spotlight today as markets continue to brace for an expected rate hike from the bank on Thursday.
GBP/EUR Exchange Rate Weakens in Wake of German Inflation
The Pound Euro (GBP/EUR) exchange rate edged lower at the start of this week’s session as Germany published its latest CPI figures.
EUR sentiment was lifted as the data revealed inflation held at 2.1% again in July, the third consecutive month in which it has remained above the European Central Bank’s (ECB) target rate of 2%.
This prompted some analysts to question whether leaving rates on hold until next summer may be too late for some ECB policymakers.
The Euro may be able to build on these gains during today’s session, with a surprise uptick in the Eurozone’s latest GDP data, potentially complimenting an expected slide in the Eurozone’s unemployment figures.
GBP/USD Exchange Rate Strengthens ahead of Fed Policy Meeting
The Pound US Dollar (GBP/USD) exchange rate ticked higher on Monday, with the ‘Greenback’ ceding ground despite a rise in US Treasury Yields.
Observers suggested the drop is likely a result of markets not expecting any major surprises from the Federal Reserve this week, leaving investors to seek profits elsewhere.
Today’s session may see the US Dollar rally however with economists forecasting a solid inflation reading from the latest US PCE Price Index.
GBP/CAD Exchange Rate Steady as Oil Prices Climb
The Pound Canadian Dollar (GBP/CAD) exchange rate initially rose around half a cent on Monday morning, but was quickly forced back towards its opening levels following a sharp upturn in oil prices.
WTI crude prices jumped over 2% during the European session over fears that sanctions on Iran could dent global supplies, helping the crude-correlated ‘Loonie’ resist the Pound’s advances.
Looking ahead the Canadian Dollar may seek to push higher this afternoon should Canada’s latest GDP figures print in line with expectations.
GBP/AUD Exchange Rate Slumps as Australian Building Approvals Soar
The Pound Australian Dollar (GBP/AUD) exchange rate suffered a sharp sell-off overnight on Monday, with the ‘Aussie’ roaring higher following a surprisingly strong rebound in domestic building approvals in June.
GBP/NZD Exchange Rate Slides as Risk Appetite Picks Up
The Pound New Zealand Dollar (GBP/NZD) exchange rate tumbled by over half a cent on Monday as investors flocked to high-yield currencies such as the ‘Kiwi’ as they sought to make a quick profit ahead of some key central bank meetings later in the week.
However the ‘Kiwi’ may find itself ceding these gains later today, with an expected fall in domestic employment growth in the second quarter likely to weigh on the NZD exchange rate.