Pound Sterling (GBP) Exchange Rate Stalls Ahead of BoE Rate Hike
The Pound (GBP) failed to find any purchase on Wednesday, with markets continuing to hold their positions ahead of an expected rate hike from the Bank of England (BoE) later today.
This saw GBP investors more than willing to overlook the latest UK manufacturing PMI, despite printing below expectations in July.
It remains to be seen what impact today’s expected rate hike will have on the Pound however, with analysts bracing for a potential fall in Sterling in the event of a ‘dovish’ hike from the Bank.
GBP/EUR Exchange Rate Rises as Eurozone Factory Growth Remains Weak
The Pound Euro (GBP/EUR) exchange rate ticked higher during yesterday’s session with the release of the Eurozone’s own manufacturing PMI failing to support the single currency.
While the bloc saw factory activity rise last month, this was still the second slowest rate of expansion in over a year, leaving the EUR exchange rate largely flat on Wednesday.
Looking ahead, a lull in data is likely to leave the Euro at the mercy of markets today, especially in light of the BoE’s rate decision.
GBP/USD Exchange Rate Tumbles Following Hawkish Fed Policy Meeting
After holding steady during the day, the Pound US Dollar (GBP/USD) exchange rate fell back overnight on Wednesday following the Federal Reserve’s latest policy meeting.
While no policy changes were delivered yesterday, the USD exchange rate strengthened as the Fed struck an upbeat tone regarding US economic growth, signalling that it would stick with its plans to gradually lift interest rates.
Meanwhile the US Dollar may advance today, with the currency likely to be supported by an expected uptick in US factory orders.
GBP/CAD Exchange Rate Flat as Oil Prices Sink
The Pound Canadian Dollar (GBP/CAD) exchange rate remained virtually unchanged through Wednesday’s session, with a sharp downturn in oil prices leaving the crude-correlated ‘Loonie’ on the defensive.
GBP/AUD Exchange Rate Advances despite Heathy Australian Trade Balance
The Pound Australian Dollar (GBP/AUD) exchange rate jumped by over half a cent on Wednesday, with growing trade tensions between the US and China as well as a sharp downturn in iron ore prices undermining the ‘Aussie’, despite some better-than-expected domestic trade data.
Looking forward, the Australian Dollar may be forced to retreat overnight on Thursday as economists forecast June’s retail data will reveal a slight dip in domestic sales growth.
GBP/NZD Exchange Rate Appreciates as Risk Sentiment Slumps
The Pound New Zealand Dollar (GBP/NZD) exchange rate surged on Wednesday as the ‘Kiwi’ was buffeted by a notable pull back in market risk appetite in the wake of reports that the US may be planning to up its proposed tariffs against China.