Pound Sterling (GBP) Exchange Rates Flat on Carney News
The Pound (GBP) was trading in a narrow range against the majority of its peers on Tuesday, with the announcement that Mark Carney would be extending his tenure as Bank of England (BoE) Governor until January 2020 failing to inspire Sterling sentiment.
This appeared to be due to disappointment that Carney would not be fulfilling his entire term at the helm of the BoE throughout the entirety of the Brexit transition period.
With no major UK data scheduled for release today, markets are likely to focus on the BoE’s upcoming rate decision on Thursday, with the Pound likely to stumble if Brexit uncertainty leads to a dovish outlook from policymakers.
GBP/EUR Exchange Rate Stable as German Economists Remain Pessimistic
The Pound Euro (GBP/EUR) exchange rate held steady during yesterday’s trading session as another gloomy ZEW survey from Germany prevented the single currency from making solid gains against Sterling.
While optimism improved slightly this month, the latest index remained in negative territory as pessimism about international trade was replaced by concerns about Turkey’s currency crisis.
Looking forward, the Euro may be left to languish throughout Wednesday’s session due to forecasts that the Eurozone’s latest industrial production figures will show another contraction in July.
GBP/USD Exchange Rate Slides as Trade Uncertainty Builds
The Pound US Dollar (GBP/USD) exchange rate traded in a wide range on Tuesday, initially rallying in the morning before falling back below $1.30 by the end of the European session amid simmering geopolitical tensions.
The US Dollar was placed back on the offensive by the end of yesterday’s session as Donald Trump’s threat to impose tariffs on all Chinese exports played on traders’ nerves once again.
Looking ahead, the release of the latest US producer price index could help to bolster USD exchange rates later this afternoon if it indicates that US inflationary pressure continued to build in August.
GBP/CAD Exchange Rate Slips as Oil Prices Surge on OPEC Production Problems
The Pound Canadian Dollar (GBP/CAD) exchange rate fell back yesterday, with a weakened Sterling failing to hold back the oil-sensitive ‘Loonie’ as it was lifted by a sharp rise in crude prices.
However, slightly trimming the Canadian Dollar’s gains were concerns regarding NAFTA negotiations as markets braced for the latest round of talks in Washington amid fears that time is running out.
GBP/AUD Exchange Rate Steady as Trade War Jitters Grow
After dipping towards the end of yesterday’s European session, the Pound Australian Dollar (GBP/AUD) exchange rate found its footing again overnight as a surge in risk aversion dampened demand for the ‘Aussie’ once again.
GBP/NZD Exchange Rate Breaks past the NZ$2.00 Barrier
The Pound New Zealand Dollar (GBP/NZD) exchange rate, briefly broke above NZ$2.00 before settling slightly lower yesterday, with the pairing likely to test these waters again today should trade jitters continue to weigh on market risk sentiment.