Pound Sterling (GBP) Exchange Rates Surge on Barnier Remarks
The Pound (GBP) roared back into life at the end of last week’s session as markets welcomed positive comments from the EU’s chief negotiator Michel Barnier regarding a possible Brexit deal with the UK.
Barnier stated on Friday that the EU wanted the ‘closest relationship possible’ with the UK and reaffirmed the EU’s position that it wished to avoid a no-deal Brexit.
Sterling may look to extend these gains this morning as well, with GBP exchange rates likely to strengthen should the UK’s latest industrial production figures report that domestic factory output continued to accelerate in July.
GBP/EUR Exchange Rate Climbs as Eurozone GDP Falls Short
The Pound Euro (GBP/EUR) exchange rate surged over half a cent during Friday’s trading session as EUR investors were left disappointed by the Eurozone latest GDP estimate.
While second quarter GDP remained at 0.4% as expected the accompanying annualised figures were revised down from 2.2% to 2.1% in the latest reading, leading to a drop in the single currency.
This week’s session may prove more supportive for the Euro however, with EUR exchange rates likely to be strengthened if the European Central Bank (ECB) confirms that its stimulus programme will be wrapped up this year, following its policy meeting later in the week.
GBP/USD Exchange Rate Gains Trimmed by Surge in US Payrolls
While the Pound US Dollar (GBP/USD) exchange rate was able to advance on Friday, the pairing’s gains were stifled by the release of the latest US labour statistics.
This saw the US Dollar supported by both a 201,000 surge in US payroll numbers as well as a surprise upswing in average hourly wages in August.
Looking to the week ahead, the US Dollar may find itself back on the offensive, with ongoing global trade uncertainties likely to see investors continue flocking to the safe-haven currency.
GBP/CAD Exchange Rate Jumps Following Slump in Canadian Employment
The Pound Canadian Dollar (GBP/CAD) exchange rate climbed nearly a cent at the end of last week’s session as the ‘Loonie’ was shunned by currency markets following a surprise contraction in Canada’s workforce last month. This resulted in domestic unemployment jumping up from 5.8% to 6%.
GBP/AUD Exchange Rate Skyrockets as Market Shun Risk-Sensitive Currencies
The Pound Australian Dollar (GBP/AUD) exchange rate struck a new four-month high at the end of last week’s session as the risk-sensitive ‘Aussie’ was pressured by some strong US data as well as increased trade tensions between the US and China.
GBP/NZD Exchange Rate Surges as Global Uncertainty Grows
The Pound New Zealand Dollar (GBP/NZD) exchange rate also raced higher on Friday, with the pairing reaching its highest levels so far in 2018 as the ‘Kiwi’ was battered by the slump in market risk appetite.