Pound Sterling (GBP) Exchange Rates Stable as BoE Rate Decision Nears
In the absence of any UK data, the Pound (GBP) trended narrowly on Tuesday with markets continuing to eye the Bank of England’s (BoE) rate decision later in the week.
This saw GBP investors continue to show their reluctance to alter their positions in Sterling on Tuesday as they brace for an expected rate hike on Thursday.
Looking ahead to today’s session the Pound could show some losses in the morning, following an expected fall in the UK’s Manufacturing PMI in July.
GBP/EUR Exchange Rate Subdued Following Wealth of Eurozone Data
The Pound Euro (GBP/EUR) exchange rate remained on the back foot on Tuesday as in contrast to the UK’s lull in data, the Eurozone published several high impact releases.
While headline release of the Eurozone’s GDP may have disappointed as growth slowed in the second quarter, some upbeat inflation and employment figures more than helped to make up for it.
The final release of the bloc’s manufacturing PMI is likely to be less supportive of the Euro today however, with economists forecasting growth will have remained fairly subdued in July.
GBP/USD Exchange Rate Stable as Inflation Falls below Expectations
The Pound US Dollar (GBP/USD) exchange rate traded in a narrow range during Tuesday’s session, with the ‘Greenback’ treading water following the release of the PCE Price Index.
As the Federal Reserve’s preferred measurement of inflation, the slight dip in the index was not greeted with enthusiasm by USD investors.
The US will also publish its own factory growth figures this afternoon, with another solid result in the ISM manufacturing PMI likely to strengthen the US Dollar, although with a Fed rate decision taking place later in the session the PMI’s impact may be minor.
GBP/CAD Exchange Rate Retreats as Canadian GDP Surges
After initially rising on Tuesday morning in the wake of some worrying reports regarding NAFTA negotiations, the Pound Canadian Dollar (GBP/CAD) exchange rate fell back by the end of the session as Canadian inflation roared from 0.1% to 0.5% in May, beating forecasts of a more modest rise to 0.4%.
GBP/AUD Exchange Rate Fluctuates on Unclear Trade Outlook
The Pound Australian Dollar (GBP/AUD) exchange rate slumped on Tuesday as rising optimism in US-China trade talks bolstered investor risk appetite.
However markets quickly soured on the Australian Dollar again overnight as this risk appetite was dented by reports that the White House could be planning 25% tariffs on $200bn worth of Chinese goods.
Meanwhile Australia will release its latest trade figures overnight on Wednesday, with a possible upswing in the domestic surplus likely to reflect well on the ‘Aussie’.
GBP/NZD Exchange Rate Rises Following Shock Rise in NZ Unemployment
The Pound New Zealand Dollar (GBP/NZD) exchange rate swung higher overnight on Tuesday, recouping much of the losses made earlier in the session as a surprise rise in New Zealand’s unemployment rate in the second quarter weighed heavily on the ‘Kiwi’.