Pound Sterling (GBP) Exchange Rates Steady, but Brexit Outlook Remains Mixed
The Pound (GBP) stabilised against the majority of its peers yesterday as a mixed Brexit outlook effectively eliminated any upside to the UK currency.
Sterling currently remains highly vulnerable to market sentiment, as evidenced by yesterday’s fluctuations following conflicting reports on whether a Brexit deal could be reached by October.
The Pound is expected to fall back today however as the CBI’s latest distributive trades survey is expected to report that UK retail activity slowed in August.
GBP/EUR Exchange Rate Fluctuates, Eurozone PMIs in Focus
The Pound Euro (GBP/EUR) exchange rate fluctuated on Wednesday as mixed Brexit sentiment prompted volatility in Sterling.
However the pairing still closed the session close to its opening levels as a lull in Eurozone data left the Euro unable to consolidate its gains.
Looking ahead, the Eurozone’s latest PMI figures may see the Euro drop this morning, with economists forecasting that private sector growth will have remained largely flat this month.
GBP/USD Exchange Rate Firms Thanks to US Political Uncertainty
The Pound US Dollar (GBP/USD) exchange rate struck a new two-week high during yesterday’s session, following the news that Donald Trump’s former lawyer directly implicated him in the violation of campaign finance laws.
While it is unlikely that this will topple Trump’s presidency the news unnerved investors, leading to a broad-based fall in USD on Wednesday.
The US Dollar may look to mount a recovery later however, should some strong US housing figures help to reignite confidence in the ‘Greenback’.
GBP/CAD Exchange Rate Fluctuates as Weak Canadian Data Offsets Surging Oil Prices
The Pound Canadian Dollar (GBP/CAD) exchange rate was met by volatility on Wednesday, with the pairing initially stumbling as the crude-correlated ‘Loonie’ was bolstered by a 2% surge in oil prices.
However CAD failed to cling to these gains in the afternoon as the latest Canadian data revealed domestic retail sales growth nosedived from 2.2% to -0.1% in June.
GBP/AUD Exchange Rate Jumps as Political Fears Bite the ‘Aussie’
The Pound Australian Dollar (GBP/AUD) exchange rate ticked higher on Wednesday, driven mostly by ongoing political turmoil in Australia, with analysts fearing that Prime Minister Malcolm Turnbull could see additional leadership challenges in the future after narrowly surviving a vote earlier in the week.
GBP/NZD Exchange Rate Rises as Trade Tariffs Kick in
The Pound New Zealand Dollar (GBP/NZD) exchange rate trended higher overnight on Wednesday as the risk-sensitive ‘Kiwi’ was dented as the US imposed further tariffs on $16bn worth of Chinese goods, despite the two sides meeting this week in an attempt to resolve the trade dispute.
Meanwhile, the New Zealand Dollar may tumble even further later tonight, as New Zealand’s latest trade figures are expected to report that the domestic trade deficit widened significantly in July.