Pound Sterling (GBP) Exchange Rates Plummet on Fox’s No-Deal Brexit Forecast
The Pound (GBP) got off to a poor start this week with the currency slumping in the wake of International Trade Secretary Liam Fox’s suggestion that a no-deal Brexit looks the most likely outcome for the UK.
Speaking to the Sunday Times, Fox suggested that the chances of the UK crashing out of the EU are now around 60%, much to the dismay of GBP investors.
In the absence of any other notable data over the next couple of days, we can expect Brexit to continue to dominate Sterling sentiment, with the GBP exchange rate likely to tumble if headlines remain gloomy.
GBP/EUR Exchange Rate Slides despite Abysmal German Data
The Pound Euro (GBP/EUR) exchange rate slumped close to a two-week low yesterday in the wake of Fox’s comments.
However, slowing the Euro’s advance was the release of Germany’s latest industrial data, with a sharper-than-expected contraction in factory orders denting the single currency’s gains.
The Euro may struggle to advance today however following the release of more weak industrial production figures from Germany this morning.
GBP/USD Exchange Rate Nosedives as Trade Uncertainty Dominates
The Pound US Dollar (GBP/USD) exchange rate closed in on a one-year low yesterday as the ‘Greenback’ was bolstered by ongoing trade concerns.
Further trade war rhetoric between the US and China drove markets to flock to the US Dollar on Monday, with investors very much risk-off.
Looking ahead the USD/GBP exchange rate may continue to advance this afternoon, with economists forecasting another strong showing from the latest US job openings data.
Losses in GBP/CAD Exchange Rate Trimmed by Saudi Arabia Trade Spat
While the Pound Canadian Dollar (GBP/CAD) exchange rate fell back on Monday, the pairing’s losses were capped somewhat as Saudi Arabia announced it was freezing all trade with Canada, adding to the trade uncertainty surrounding the ‘Loonie’.
GBP/AUD Exchange Rate Slides as RBA Sticks to the Status Quo
The Pound Australian Dollar (GBP/AUD) exchange rate fell back overnight on Monday as markets reacted to the Reserve Bank of Australia’s latest rate decision, which saw the bank stick to its neutral bias despite a recent drop in inflation.
GBP/NZD Exchange Rate Slides despite Drop in Risk Sentiment
The Pound New Zealand Dollar (GBP/NZD) exchange rate slumped by around half a cent on Monday as the fall in Sterling more than offset the New Zealand Dollar’s weakness in the face of growing trade uncertainty.
The NZD exchange rate could face some losses later in the session however, with another slide in prices at the latest global dairy auction likely to weigh on the milk-sensitive ‘Kiwi’.