Pound Sterling (GBP) Exchange Rates Lifted by UK Employment Figures
The Pound (GBP) found support on Tuesday in the form of the UK’s latest labour figures, with Sterling sentiment being lifted by a surprise drop in unemployment.
The Office for National Statistics (ONS) reported that the UK’s unemployment rate fell to 4% in June, its lowest levels since 1975.
However the accompanying wage growth figures proved less upbeat, with an unexpected fall in average earnings limiting Sterling’s potential gains.
The focus for GBP investors will now be on today’s CPI figures, with an expected uptick in inflation potentially weakening the Pound as it suggests UK workers may be facing another fall in real wages.
GBP/EUR Exchange Rate Strengthens Despite Better-than-Expected GDP Figures
The Pound Euro (GBP/EUR) exchange rate advanced around 0.2% during yesterday’s session, despite the Eurozone’s latest GDP estimate for the second quarter printing higher than expected.
While this provided some momentary relief for the Euro it was not enough to complete offset concerns regarding the Eurozone’s exposure to Turkey’s currency crisis.
With no major Eurozone data scheduled for today these concerns may continue to hound the Euro throughout Wednesday’s trading session.
GBP/USD Exchange Rate Stable as Lira Sell-Off Eases
The Pound US Dollar (GBP/USD) exchange rate trended narrowly on Tuesday, holding close to a 13-month low as USD demand remained buoyant in the face of uncertainty in Turkey.
However with the Turkish Lira (TRY) and other emerging currencies stabilising on Tuesday and little in the way of domestic data, the US Dollar ultimately remained largely stagnant yesterday.
The release of US retail sales figures could have a dampening effect on the US Dollar today however, with analysts predicting a notable slowdown in sales growth last month.
GBP/CAD Exchange Rate Tumbles as Oil Prices Soar
The Pound Canadian Dollar (GBP/CAD) exchange rate slump by around half a cent on Tuesday as the crude-correlated ‘Loonie’ was buoyed by a sharp uptick in oil prices, with Brent crude soaring by around 1.75% as Saudi Arabia announced it would cut production.
GBP/AUD Exchange Rate Strengthens as Commodity Prices Slide
The Pound Australian Dollar (GBP/AUD) exchange rate ticked higher again on Tuesday as the ‘Aussie’ was pressured by a broad drop in commodity prices, particularly in spot prices for iron ore, one of Australia’s main exports.
Australia will publish its latest jobs report later tonight, with investor bracing for a further losses in AUD if employment growth slowed in line with forecasts last month.
GBP/NZD Exchange Rate Losses Prove to be Short Lived
The Pound New Zealand Dollar (GBP/NZD) exchange rate tumbled on Tuesday, losing around 0.2% through the European session, however with NZD lacking any fundamentals to sustain the move, the ‘Kiwi’ fell back again overnight.