Pound Sterling Plummets to 9-Month Low vs. Euro (GBP/EUR) and 11-Month Low vs. US Dollar

Pound Sterling (GBP) Exchange Rates Bruised by Brexit Jitters

The Pound (GBP) was hit by another heavy sell-off on Wednesday, striking new multi-month lows against many of its peers amidst ongoing worries of a ‘no-deal’ Brexit.

Fears that the UK could crash out of the EU without a deal have heightened in recent days following comments from Bank of England (BoE) Governor Mark Carney and International Trade Secretary Liam Fox.

This has reportedly led to many traders seeking to hedge their bets against a further drop in Pound, which appeared to accelerate the currency’s losses on Thursday.

In the absence of any UK data the downtrend in the GBP exchange rate may continue through Thursday’s session as attention remains on Brexit.

Pound Sterling to Euro (GBP/EUR) Exchange Rate Falls below €1.11

The Pound Euro (GBP/EUR) exchange rate tumbled around 0.4% on Wednesday, with the pairing touching a fresh nine-month low following the broad-based fall in Sterling.

This brings the losses in GBP/EUR to over a cent so far this week.

Today will see the European Central Bank (ECB) publish its latest Economic bulletin which, with an absence of any other major releases today, could drive momentum in the EUR exchange rate.

Pound Sterling to US Dollar (GBP/USD) Exchange Rate’s Losses Accelerated by Safe-Haven Demand

The Pound US Dollar (GBP/USD) exchange rate fell below $1.29 for the first time since August 2017 during yesterday’s session, with the pairing’s losses being exacerbated by rising trade tensions between the US and China.

The latest development saw Washington impose tariffs on an additional $16bn worth of Chinese goods, leading Beijing announcing tit-for-tat measures later in the session and bolstering demand for safe-haven currencies such as the US Dollar.

Should tensions fail to ease then it is likely that the USD exchange rate may continue to trend higher through Thursday’s session as well.

GBP/CAD Exchange Rate Slides despite Canada’s Growing Spat with Saudi Arabia

While the Pound Canadian Dollar (GBP/CAD) exchange rate plummeted on Wednesday, CAD’s performance was far less dramatic against its other peers as the Financial Times reported Saudi Arabia had begun selling off all Canadian assets it possesses.

GBP/AUD Exchange Rate Slides as Brexit Concerns Offset Trade Fears

The Pound Australian Dollar (GBP/AUD) exchange rate struck a new eight-month low during Wednesday’s session, with the heavy losses in Sterling more than offsetting AUD weakness in the face of further trade tensions.

The Reserve Bank of Australia will publish its latest Statement on Monetary Policy this afternoon, which could prove positive for the ‘Aussie’ if the bank appears optimistic in tone.

GBP/NZD Exchange Rate Rallies following Dovish RBNZ Policy Statement

After falling heavily during European trading yesterday, the Pound New Zealand Dollar (GBP/NZD) exchange rate recouped all of its losses as the Reserve Bank of New Zealand (RBNZ) hinted that the next rate hike may be further off than previously thought.

Looking ahead the ‘Kiwi’ could come under further pressure later this evening if New Zealand’s latest Business PMI figures print below expectations.

 

Hannah Wilson

Contact Hannah Wilson


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