Pound Sterling (GBP) Exchange Rates Steady on Uneventful BoE Meeting
The Pound (GBP) remained largely rangebound against its peers yesterday, with the UK currency holding onto its recent gains as the Bank of England (BoE) left interest rates on hold as expected following its latest policy meeting.
In light of ongoing Brexit uncertainty the bank chose to stick to its stance that interest rates will continue to rise at a ‘gradual pace and to a limited extent’, leading analysts to forecast that the next rate hike is unlikely to occur until May.
However BoE Governor Mark Carney may have the chance to breathe some life into Sterling later today if he sounds optimistic when he speaks later this morning.
GBP/EUR Exchange Rate Flat as ECB Leaves Rates on Hold
The European Central Bank (ECB) also delivered its latest rate decision yesterday, with the Pound Euro (GBP/EUR) exchange rate ending Thursday’s European session almost exactly where it began as the banks also left interest rates on hold.
One point of note however was the ECB’s latest growth projections as the bank trimmed its forecasts for GDP down from 2.1% to 2% in 2018 and 1.9% to 1.8% in 2019 in light of the risks posed by the ongoing uncertainty surrounding international trade.
Looking ahead the Euro may be prompted to push higher later this morning should data reveal Eurozone wage growth swung higher in the second quarter as forecast.
GBP/USD Exchange Rate Advances as US Inflation Comes up Short
The Pound US Dollar (GBP/USD) exchange rate struck a new six-week high on Thursday, as the ‘Greenback’ pulled back as US inflation retreated from a 10-year high in August.
While the drop is unlikely to deter the Federal Reserve from pushing forward with another two rate hikes before the end of the year, some analysts warned that a prolonged downtrend could weaken the case for multiple hikes in 2019.
The US Dollar may be forced to extend these losses later this afternoon as well, with the latest US retail data expected to show sales growth slowed last month.
GBP/CAD Exchange Rate Advances as Oil Prices Retreat
The Pound Canadian Dollar (GBP/CAD) exchange rate rallied yesterday afternoon, recouping many of the losses suffered on Wednesday as concerns about the impact of a potential trade war on oil demand saw crude prices ease slightly on Thursday, dragging the ‘Loonie’ lower.
GBP/AUD Exchange Rate Rallies as Trump Keeps Pressure on China
After initially stumbling at the start of the session, the Pound Australian Dollar (GBP/AUD) exchange rate rebounded by the end of Thursday as President Donald Trump talked down reports he would be willing to settle his trade dispute with China.
GBP/NZD Exchange Rate Jumps as Global Trade Uncertainty Remains
The Pound New Zealand Dollar (GBP/NZD) exchange rate climbed around half a cent yesterday afternoon as US China trade tensions showed no signs of abating.