Pound Sterling (GBP) Exchange Rates Slide on UK Political Anxiety
The Pound (GBP) struggled to find any momentum on Wednesday, stalling against the majority of its peers as it emerged that leading Eurosceptic MPs were openly discussing a leadership challenge against Theresa May.
While those involved dismissed the reports, saying it was just ‘loose talk’, it was enough to leave Sterling treading water throughout yesterday’s session.
Looking ahead the Bank of England (BoE) will deliver its latest rate decision this afternoon and while no policy changes are expected this month, a relatively upbeat outlook from the bank could inject some life back into the Pound.
GBP/EUR Exchange Rate Muted as Eurozone Factory Output Slows
The Pound Euro (GBP/EUR) exchange rate traded in a narrow range on Wednesday as the UK’s political woes were offset by a contraction in Eurozone Industrial production.
According to Eurostat factory output across the block fell 0.8% in July, mirroring the contraction in June and falling below expectations of a more modest 0.5% fall.
Meanwhile movement in the Euro today will largely be dictated by the outlook from the European Central Bank (ECB), with EUR exchange rates potentially appreciating should the bank’s forecasts appear to support a rate hike before the end of 2019.
GBP/USD Exchange Rate Flat Amid Trade Uncertainty, Weak Data
The Pound US Dollar (GBP/USD) exchange rate trod water yesterday, with a focus on US trade policy leaving investors reluctant to alter their positions in the US currency.
Further denting the Dollar’s potential to advance was the publication of the latest US producer price index, which showed a surprise contraction in prices in August.
This could hint at a slowing of US inflation last month, which if confirmed in today’s CPI reading could dampen demand for the ‘Greenback’.
GBP/CAD Exchange Rate Dips as Oil Prices Soar
The Pound Canadian Dollar (GBP/CAD) exchange rate stumbled around half a cent during yesterday’s trading session, with the oil-sensitive ‘Loonie’ punching higher as it was buoyed by a 2% rise in the WTI oil price following a sizable fall in US crude inventories.
GBP/AUD Exchange Rate Slumps Following Strong Australian Labour Figures
After sliding during the European session yesterday, the Pound Australian Dollar (GBP/AUD) exchange rate extended its losses overnight as the ‘Aussie’ was buoyed by Australia’s latest labour report, which revealed a sharp upswing in employment growth last month.
GBP/NZD Exchange Rate Slides despite Trade Uncertainty
The Pound New Zealand Dollar (GBP/NZD) exchange rate fell by around a cent on Wednesday, with the losses in Sterling helping to offset weakness in the ‘Kiwi’ in face of ongoing trade uncertainty.