Pound Sterling (GBP) Exchange Rates Flat on IMF Brexit Warning
The Pound (GBP) opened this week’s session with somewhat of a whimper, with the currency struggling to find any momentum as the IMF delivered its latest verdict on the UK economy.
Unsurprisingly the IMF’s outlook for the UK mostly revolved around Brexit, with the fund warning that all likely Brexit outcomes are likely to have a negative impact on Brexit, with IMF Managing Director Christine Lagarde’s outlook for a no-deal Brexit being particularly dire.
Christine Lagarde: “All the likely Brexit scenarios will have costs for the UK economy, and to a lesser extent the EU”
IMF chief warns no-deal #Brexit carries greatest risk to UK economy https://t.co/qoZfwsMeLJ pic.twitter.com/1EJW7Ju581
— BBC News (UK) (@BBCNews) September 17, 2018
With no major UK data releases scheduled for today, any movement in Sterling is likely to continue to be driven by UK political or Brexit developments.
GBP/EUR Exchange Rate Steady as Eurozone Inflation Slips
The Pound Euro (GBP/EUR) exchange rate remained largely rangebound on Monday, with the pairing showing limited movement in the wake of the Eurozone’s latest CPI reading.
Yesterday’s data confirmed that inflation across the bloc slowed last month, but remained in the European Central Bank’s (ECB) target range of 2%.
Meanwhile the Euro could be placed on the defensive later today should ECB President Mario Draghi warn over the potential for US-led trade volatility to drag on Eurozone growth.
GBP/USD Exchange Rate Surges as US Trade Concerns Bite
The Pound US Dollar (GBP/USD) exchange rate punched higher at the start of this week’s session as Donald Trump announced his latest round of tariffs against China, unnerving some USD investors.
While escalating US-China trade tensions have mostly proved USD positive, the latest reports coincided with suggestions that Beijing could look to take a more kinetic stance in the dispute, something which may dent hopes of a new agreement.
In the absence of any notable data, the escalating trade dispute is likely to continue to dominate investor sentiment today, potentially weakening the US Dollar further if it remains a cause for concern amongst investors.
GBP/CAD Exchange Rate Jumps as US Trade Concerns Prompt NAFTA Doubts
The Pound Canadian Dollar (GBP/CAD) exchange rate also shot up at the start of this week’s session, with the pairing accelerating around half a cent as skittish CAD investors feared that an escalation in the US-China trade dispute could frustrate ongoing NAFTA discussions.
GBP/AUD Exchange Rate Fluctuates Following Trump Tariffs
The Pound Australian Dollar (GBP/AUD) exchange rate initially surged late on Monday following the announcement of Trump’s tariffs.
However the ‘Aussie’ quickly bounced back early this morning as a lack of response from Beijing helped to mitigate some market jitters.
GBP/NZD Exchange Rate Met by Volatility in Face of Trade Uncertainty
Movement in the Pound New Zealand Dollar (GBP/NZD) exchange rate mirrored that of GBP/AUD overnight on Monday as the pairing was also turned upside down by Trump’s tariff announcement.
Looking to today’s session, the latest global dairy auction could led to the ‘Kiwi’ facing headwinds this afternoon, with a another dip in prices likely to negatively impact New Zealand’s vital dairy industry.