Pound Sterling (GBP) Exchange Rate Stalls as Carney Warns of No-deal Brexit Risk
The Pound (GBP) closed last week’s session on the defensive as Bank of England Governor, Mark Carney warned that the risk of a no-deal Brexit was ‘uncomfortably high’.
Furthermore, suggestions that the BoE stood ready to cut interest rates again if Brexit complications arose, weighed heavily on Sterling sentiment.
Further denting the appeal of the Pound was the release of the latest US services PMI, which revealed the services sector slowed faster than expected in July.
Looking ahead to this week’s session, a lull in data for the first part of the week could see Brexit take centre stage again, potentially dragging on the GBP exchange rate if progress remains elusive.
GBP/EUR Exchange Rate Steady on Mixed Eurozone Data
The Pound Euro (GBP/EUR) exchange rate traded in a narrow range on Friday in the wake of the Eurozone’s latest economic data.
While a rebound in retail sales was welcomed by EUR investors, any potential gains in the EUR exchange rate were scuppered by a larger-than-expected fall in the Eurozone’s latest services PMI.
Looking ahead Germany’s latest Construction PMI could help the Euro get off to a solid start this week if the data prints in line with expectations.
GBP/USD Exchange Rate Stabilises as US Payrolls Disappoint
The Pound US Dollar (GBP/USD) exchange rate was prevented from registering any further losses on Friday as the ‘Greenback’ faced some headwinds with the publication of the latest US labour report.
While the data revealed that the domestic unemployment rate fell back from 4% to 3.9% in July, a disappointing non-farm payroll reading helped to keep the US Dollar in check.
Meanwhile USD investors are likely to find themselves preoccupied with the growing trade tensions between the US and China at the start of this week, potentially strengthening the ‘Greenback’ if it continues to drive safe-haven demand.
GBP/CAD Exchange Rate Slumps Following Impressive Canadian Trade Data
The Pound Canadian Dollar (GBP/CAD) exchange rate tumbled by around half a cent on Friday, with the ‘Loonie’ surging following a sharper-than-forecast drop in Canada’s trade deficit in June.
GBP/AUD Exchange Rate Slides US Dollar Retreats
The Pound Australian Dollar (GBP/AUD) exchange rate tumbled by nearly a cent at the end of last week as some broad-based weakness in the US Dollar (USD) helped to bolster risk-correlated currencies such as the ‘Aussie’.
GBP/NZD Exchange Rate Weakness as Risk Appetite Grows
The Pound New Zealand Dollar (GBP/NZD) exchange rate largely mirrored movement in GBP/AUD on Friday, with the ‘Kiwi’ advancing as it was bolstered by rising risk sentiment.