Pound Sterling (GBP) Exchange Rates Slides as Markets Spooked by Brexit Developments
The Pound (GBP) fell back again on Wednesday, with the currency being weakened amid reports that Theresa May rejected the EU’s ‘improved’ Irish border proposal, something that will frustrate attempts to finalise a Brexit deal before November.
These renewed Brexit jitters also saw Sterling give up the ground gained earlier in the session after GBP investors welcomed a surprise jump in UK inflation last month.
Looking ahead, the pound’s woes may continue today as markets brace for an expected contraction in the UK’s latest retail sales figures.
GBP/EUR Exchange Rate Fluctuates Amidst Brexit jitters
The Pound Euro (GBP/EUR) exchange rate traded in a wide range during yesterday’s session as the single currency was also knocked by May rejection of the Irish border deal.
While not quite as exposed to the concerns of a no-deal Brexit as Sterling, the possible impact of the UK crashing out of the EU can also drag on the Euro, which appeared to be the case on Wednesday.
The release of the Eurozone’s latest consumer confidence survey may see the Euro on the defensive this afternoon however as markets predict pessimism will have risen again in September.
GBP/USD Exchange Rate Weakened by Rising Global Uncertainty
The Pound US Dollar (GBP/USD) exchange rate briefly stuck an eight-week high yesterday before quickly plummeting back to Earth following a rise in Brexit jitters.
The ensuing rise in global uncertainty also facilitated a broader recovery in USD exchange rates, with the ‘Greenback’ able to recoup some of the losses endured at the start of the week.
Looking to today’s session, the US will publish its latest existing home sales figures later this afternoon, but with a fairly muted reading expected, any resulting movement in USD is likely to be limited.
GBP/CAD Exchange Rate Slides on NAFTA Optimism
Cautious optimism ahead of the latest round of NAFTA talks in Washington saw the Pound Canadian Dollar (GBP/CAD) exchange rate push lower again on Wednesday, with CAD investors hopeful that a new agreement can still be reached before the 1 October deadline.
GBP/AUD Exchange Rate Dips as ‘Aussie’ Buoyed by Li Keqiang Comments
The Pound Australian Dollar (GBP/AUD) exchange rate stuck a two-week low on Wednesday, with the ‘Aussie’ continuing to push higher amidst an improvement in risk sentient as the Premier of China, Li Keqiang, stressed that his country would not deliberately weaken its own currency in response to Trump’s trade tariffs.
GBP/NZD Exchange Rate Plummets Following Impressive NZ GDP Figures
The Pound New Zealand Dollar (GBP/NZD) exchange rate tumbled around a cent overnight on Wednesday as New Zealand recorded its highest growth in two years with second quarter GDP shown to have gone up from 0.5% to 1%, easily beating forecasts of a more modest 0.7% expansion.