Pound Sterling (GBP) Exchange Rates Lifted by Carney Speculation
The Pound (GBP) got off to a slow start on Tuesday following a lacklustre reading in the UK’s latest construction PMI.
However this didn’t prevent GBP from rallying later in the afternoon as investors welcomed comments from Mark Carney hinting that he may be willing to remain in his position as Bank of England (BoE) Governor past 2019.
The UK will publish its latest services PMI later this morning, with Sterling potentially rising as economists forecast growth in the UK’s largest wealth generating sector will have accelerated slightly in August.
GBP/EUR Exchange Rate Advances amidst a Lull in Eurozone Data
The Pound Euro (GBP/EUR) exchange rate found some solid ground yesterday, with the Euro struggling to hold off Sterling’s advances in the face of limited new data.
Further pressuring the single currency was the renewed strength in the US Dollar, as the large volumes of EUR/USD trades left the Euro on the back foot.
Looking ahead the Euro may suffer further losses on Wednesday, with the Eurozone’s latest retail figures expected to reveal a drop in sales growth in July.
GBP/USD Exchange Rate Slumps as Risk Aversion Spurs USD Demand
The Pound US Dollar (GBP/USD) exchange rate appeared to be the only major Sterling pairing to weaken during yesterday’s session as ongoing US-China trade uncertainty saw investors flock to safe-haven currencies such as USD.
Accelerating these gains in the afternoon was the release of the latest ISM manufacturing PMI, which saw US factory activity strike a new 14-year high in August.
While global trade tensions may continue to buoy the US Dollar today, the currency may find its gains trimmed somewhat should the US trade deficit have widened as expected in July.
GBP/CAD Exchange Rate Soars as NAFTA Concerns Bite
The Pound Canadian Dollar (GBP/CAD) exchange rate surged by nearly a cent on Tuesday, with CAD tanking as Donald Trump suggested there is ‘no political necessity’ to keep Canada in a new trade deal.
Movement in the ‘Loonie’ today is likely to be driven by the Bank of Canada’s (BoC) latest monetary policy decision, with CAD likely to tumble if the recent NAFTA fallout results in a gloomy outlook from the Bank.
GBP/AUD Exchange Rate Fluctuates Following Australian GDP Data
The Pound Australian Dollar (GBP/AUD) exchange rate was met by volatility overnight on Tuesday, with the pairing initially strengthening as falling risk appetite clipped demand for AUD, before falling back as the ‘Aussie’ was lifted by some stronger-than-expected GDP figures.
GBP/NZD Exchange Rate Surges as Risk Appetite Collapses
The Pound New Zealand Dollar (GBP/NZD) exchange rate briefly struck a new three-month high on Tuesday as the risk sensitive ‘Kiwi’ was battered as investors went ‘risk-off’.