Pound Sterling (GBP) Exchange Rates Spike on Brexit Speculation
The Pound (GBP) floundered through the first half of Wednesday’s trading session as markets shrugged off the UK’s latest (positive) services PMI.
However Sterling’s fortunes saw a sharp reversal later in the day as Bloomberg reported that the UK and Germany would be willing to ‘accept a less detailed agreement on the UK’s future economic and trade ties with the EU in a bid to get a Brexit deal done.’
With no other notable UK data releases scheduled for the second half of the week, the Pound could look to extend these gains as long as no other negative Brexit headlines emerge.
GBP/EUR Exchange Rate Advances Following Contraction in Retail Sales
The Pound Euro (GBP/EUR) exchange rate jumped by around half a cent yesterday as Brexit optimism provided a much needed bump for Sterling.
The Euro was also unable to offer much resistance against the Pound’s rally, as the Eurozone’s latest retail sales data reported a contraction in sales growth in July.
Meanwhile the single currency may struggle to advance today in the wake of this morning’s disappointing German factory orders figures.
GBP/USD Exchange Rate Rises as US Trade Deficit Swells
The Pound US Dollar (GBP/USD) exchange rate briefly dipped to a two-week low on Wednesday before the emergence of Bloomberg’s Brexit report, which caused a brief rally.
The rally in the pairing was further aided by the latest US trade figures, revealing that the trade deficit widened again in July, despite President Trump’s tariffs.
Looking to today’s session, the US Dollar may continue to rally this afternoon if the latest ISM non-manufacturing PMI reveals that growth in the US service sector accelerated in August.
GBP/CAD Exchange Rate Jumps as BoC Leaves Rates on Hold
The Pound Canadian Dollar (GBP/CAD) exchange rate soared almost 1% to strike a new one-month high yesterday as the Bank of Canada (BoC) voted to keep interest rates on hold.
While the decision to leave rates on hold did not come as a surprise, the BoC’s dovish tone regarding the pressures of trade uncertainty on domestic growth saw sentiment in the Canadian Dollar nosedive.
GBP/AUD Exchange Rate Advances as Australian Trade Surplus Shrinks
The Pound Australian Dollar (GBP/AUD) exchange rate ticked higher overnight on Wednesday, with the ‘Aussie’ falling back as Australia’s trade surplus was shown to have shrunk in July.
GBP/NZD Exchange Rate Volatile as Risk Appetite Fluctuates
The Pound New Zealand Dollar (GBP/NZD) exchange rate was met by volatility on Wednesday as mixed market risk sentiment led to fluctuating demand for the ‘Kiwi’.