Pound Sterling (GBP) Exchange Rates Mixed on Uninspiring GDP Figures
Pound Sterling (GBP) exchange rates put on a mixed performance on Friday, with the currency largely left to the mercy of markets as the UK’s latest GDP figures failed to provide support.
While Friday’s GDP figures showed that UK economic growth rebounded in the second quarter, an expansion of 0.4% was still seen as largely underwhelming, limiting any potential gains in GBP exchange rates.
GBP will be hoping Brexit takes a back seat this week as the UK publishes its latest CPI figures, with an expected uptick in inflation potentially aiding a rally in Sterling.
GBP/EUR Exchange Rate Strengthens as ECB Raises Concerns over Turkey
The Pound Euro (GBP/EUR) exchange rate was allowed to tick higher at the end of last week’s session as markets soured on the single currency following reports that ECB officials are concerned about the Eurozone’s exposure to Turkey’s current financial plight.
Reports suggest that the European Central Bank is worried that the deprivation of the Turkish Lira (TRY) could negatively impact Eurozone banks that have invested in the country over recent years.
Looking ahead, the Euro could come under further pressure this week as the Eurozone’s latest GDP estimate is expected to confirm that growth in the bloc slowed in the second quarter.
GBP/USD Exchange Rate Nosedives as Global Uncertainty Surges
The Pound US Dollar (GBP/USD) exchange rate tumbled to a fresh 13-month low on Friday, with the ‘Greenback’ skyrocketing in the face of growing global uncertainty.
While this was partly down to ongoing trade tensions between the US and China, the US Dollar’s gains were mostly driven by a run on emerging currencies following a 19% fall in the Turkish Lira.
It remains to be seen if the US Dollar can consolidate gains this week however, especially if US retail sales growth falls in line with expectations.
GBP/CAD Exchange Rate Slumps as Canadian Employment Figures Impress
The Pound Canadian Dollar (GBP/CAD) exchange rate fell by around 0.4% during Friday’s session as the ‘Loonie’ was propelled higher by some stronger-than-expected domestic employment figures, which saw Canada’s unemployment fall back to 5.8% in July.
GBP/AUD Exchange Rate Soars on Cautious RBA Statement
The Pound Australian Dollar (GBP/AUD) exchange rate rallied at the end of last week, with the ‘Aussie’ facing some notable losses following a cautious economic statement from the Reserve Bank of Australia (RBA), which saw the bank downgrade its inflation forecast for 2018.
Australian will publish its latest business confidence figures later tonight, potentially driving further losses in AUD if sentiment continues to slide in the face of rising trade uncertainty.
GBP/NZD Exchange Rate Fluctuates on Lira Uncertainty
The Pound New Zealand Dollar (GBP/NZD) exchange rate traded in a wide range on Friday, fluctuating as much as a cent through the session as the collapse of the Turkish Lira sent ripples across financial markets, rocking demand for risk-correlated currencies like the ‘Kiwi’.