Pound Sterling (GBP) Exchange Rates Static despite Rising Inflation
Trade in the Pound (GBP) remained muted on Wednesday as the first rise in domestic inflation in over nine months failed to inspire confidence in the currency.
This may be due to the Bank of England (BoE) having previously signalled that another rate hike is not likely for some time, eliminating any upside to the rise in inflation.
Sterling could look to rally during today’s session however, with an expected rebound in domestic retail sales growth in July potentially strengthening the Pound.
GBP/EUR Exchange Rate Steady as Turkey’s Crisis Continues to Plague the Euro
The Pound Euro (GBP/EUR) exchange rate remained largely range bound yesterday, with traders remaining skittish regarding the Eurozone’s exposure to Turkey’s currency crisis despite a rally in the Turkish Lira.
Investors are now beginning to express concerns that Turkey’s financial woes could cause the European Central Bank (ECB) to further delay its pursuit of monetary normalisation.
Today’s session could see the Euro begin to creep higher however if it finds support from the Eurozone’s latest trade balance figures.
GBP/USD Exchange Rate Slides as US Retail Sales Impress
The Pound US Dollar (GBP/USD) exchange rate fell for the twelfth consecutive day on Wednesday, striking a new 14-month low as a result of the continued strengthening of the US Dollar.
While the ‘Greenback’ has enjoyed considerable gains in recent days thanks to the meltdown in the Turkish Lira (TRY) these were accelerated further by the release of some stronger than expected US retail sales figures during yesterday’s session.
The US Dollar may seek to continue this trend through Thursday as well, with another robust reading in the Philadelphia Fed Manufacturing Index potentially buoying USD.
GBP/CAD Exchange Rate Firm as Oil Prices Plunge
The Pound Canadian Dollar (GBP/CAD) exchange rate remained in positive territory on Wednesday as the crude-correlated ‘Loonie’ faced headwinds due to a sizeable fall in oil prices, as rising US inventories largely reversed the gains seen on Tuesday.
However there is potential for the Canadian Dollar to rally today, with economists forecasting Canada’s latest ADP employment figures will reveal a rebound in employment growth last month.
GBP/AUD Exchange Rate Slides as Australian Unemployment Falls
The Pound Australian Dollar (GBP/AUD) exchange rate fell by nearly half a cent overnight on Wednesday, extending the losses seen earlier in the day as markets welcomed a surprise fall in Australian unemployment in July.
However the ‘Aussie’ may be forced to relinquish some of these gains overnight on Thursday should a speech by Reserve Bank of Australia (RBA) Governor, Philip Lowe appear dovish in tone.
GBP/NZD Exchange Rate Lifted by Positive Trade Talk
The Pound New Zealand Dollar (GBP/NZD) exchange rate slumped on Wednesday as the ‘Kiwi’ punched higher following reports that a Chinese delegation will travel to the US for trade talks later this month, with analysts hopeful it will help to cool trade global tensions.