Pound Sterling (GBP) Exchange Rates Volatile amidst Brexit Uncertainty
The Pound (GBP) fell back against the majority of its peers on Tuesday morning, with the markets appearing to adopt a caution stance ahead of an EU summit later this week, despite recent positive progress in Brexit negotiations.
However the currency began to rally again by the end of the European session as markets welcomed reports that the EU is ‘ready to improve’ its Irish border proposal.
Looking ahead the UK’s latest CPI figures could put further pressure on the Pound today, with GBP investors bracing for an expected slide in inflation last month.
GBP/EUR Exchange Rate Fluctuates on USD Weakness
After surging higher overnight on Monday, the Pound Euro (GBP/EUR) exchange rate was forced to cede ground early on Tuesday as the single currency benefited from a broad-based fall in the US Dollar (USD).
These gains reversed later in the day however as the Euro lost out to some renewed Brexit optimism.
Meanwhile the Euro may struggle today, with Eurozone data expected to reveal construction output across the bloc slowed in July.
GBP/USD Exchange Rate Steady as Trade War Concerns Dominate
The Pound US Dollar (GBP/USD) exchange rate was prevented from registering any losses yesterday as the ‘Greenback’ remained pinned down by trade uncertainty.
This bucks the recent trend of USD strengthening in the face of rising trade tensions, with analysts attributing this to concerns about the potential impact of the tariffs on the wider US economy, especially now the levies will now target consumer goods.
Another lull in domestic data also means movement in the US Dollar will likely remain tied to trade sentiment throughout today’s session as well, setting up the currency for further volatility.
GBP/CAD Exchange Rate Falls Back as Canadian Factory Data Impresses
The Pound Canadian Dollar (GBP/CAD) exchange rate stumbled by around half a cent yesterday, with the ‘Loonie’ being buoyed by rising oil prices as well as stronger-than-expected domestic manufacturing data, which helped to bolster expectations of an October rate hike from the Bank of Canada.
GBP/AUD Exchange Rate Slides despite Trade Tensions
The Pound Australian Dollar (GBP/AUD) exchange rate trended lower yesterday despite another escalation in trade tensions between the US and China, with analysts suggesting this was thanks to the actions being largely priced in by markets.
GBP/NZD Exchange Rate Volatile Ahead of GDP Data
The Pound New Zealand Dollar (GBP/NZD) exchange rate meanwhile traded in a wide range yesterday due to growing global trade uncertainty and ahead of the release of New Zealand’s latest GDP figures.