Pound Sterling (GBP) Exchange Rate Plunges as BoE Appears Reluctant to Implement Further Hikes
The Pound (GBP) fell back against the majority of its peers on Thursday as markets reacted to the Bank of England’s decision to raise interest rates to 0.75%.
While a unanimous vote to hike rates signalled a more hawkish outlook than expected from the bank, Sterling was undermined by a cautious Mark Carney, with the BoE Governor indicating this may be the only hike for some time.
This downtrend in the GBP exchange rate only looks to deepen today as well, with economists forecasting a slide in the UK’s latest services PMI.
Losses in GBP/EUR Exchange Rate Capped by Safe-Haven Demand
The Pound Euro (GBP/EUR) exchange rate retreated during yesterday’s session, giving up all of Wednesday’s gains in the wake of the BoE Rate decision.
However slightly clipping the single currency’s gains was an uptick in demand for the US Dollar (USD), which came in the wake of rising trade tensions and some upbeat US data.
The Euro may look to press its advantage during today’s trading session as well, with the single currency potentially rising if Eurozone retail sales rebound in line with expectations.
GBP/USD Exchange Rate Plummets as Trade War Fears Grow
The Pound US Dollar (GBP/USD) exchange rate plunged yesterday as resurgent fears of a potential trade war between the US and China prompted investors to flock to the ‘Greenback’.
Helping to further bolster the US Dollar was the publication of the latest US factory orders figure, with a healthy upswing in order growth being welcomed by USD investors.
All eyes will be on the release of the latest US payroll figures today, with another robust rise in payroll figures or a slide in the US unemployment rate likely to bolster the US Dollar.
GBP/CAD Exchange Rate Slides despite Rising Trade Tensions
The Pound Canadian Dollar (GBP/CAD) exchange rate struck a new seven month low on Thursday as the fallout surrounding the BoE’s rate decision more than offset the risk-correlated ‘Loonie’s weakness following a rise in global trade tensions.
The Canadian Dollar may be forced to walk back some of these gains today however, with another sizeable deficit in Canada’s latest trade balance likely to undermine the currency.
GBP/AUD Exchange Rate tumbles as Australian Retail Sales Beats Expectations
The Pound Australian Dollar (GBP/AUD) exchange rate fell by over half a cent during Wednesday’s session, with the ‘Aussie’ consolidating its gains overnight following the release of some better-than-expected domestic retail sales figures.
GBP/NZD Exchange Rate Stable as Risk Appetite Weakens
While the Pound New Zealand Dollar (GBP/NZD) exchange rate fell back yesterday in the wake of the BoE rate decision, the ‘Kiwi’ struggled to cling onto its gains overnight, with a sharp downturn in risk appetite prompting GBP/NZD to recoup almost all of its losses.