Pound Sterling (GBP) Exchange Rates Bolstered by Stronger-than-Expected Retail Sales
The Pound (GBP) strengthened against the majority of its peers on Thursday, thanks to broad weakness in USD as well as the UK’s latest retail sales figures.
Data published by the Office for National Statistics (ONS) revealed domestic sales grew 0.3% in August, beating the expected 0.2% contraction, while July’s reading was revised up to 0.9%.
The focus for GBP investors today is likely to be on the Bank of England’s (BoC) latest quarterly bulletin, with the Pound potentially strengthening if the bank is broadly optimistic in its assessment of the UK’s recent economic performance.
GBP/EUR Exchange Rate Appreciates as Pessimism in the Eurozone Grows
The Pound Euro (GBP/EUR) exchange rate ticked higher yesterday as the Eurozone’s latest consumer confidence survey revealed the outlook from households has become increasingly gloomy this month.
However with Brexit negotiations still underway in Salzburg yesterday, the potential upside to GBP/EUR proved limited on Thursday in comparison with other Sterling pairings.
Looking ahead, the Eurozone will publish its latest PMI figures this morning, potentially driving the Euro lower as economists forecast growth in the bloc’s private sector will have continued to moderate in September.
GBP/USD Exchange Rate Jumps on Broad US Dollar Weakness
The Pound US Dollar (GBP/USD) exchange rate saw a sudden surge on Thursday, climbing over 1% at points as the ‘Greenback’ was hit heavy selling.
This appeared mostly driven by a rout in the US bond market, which helped to stoke a loss of confidence in USD amid suggestions the US and China were set to do battle with the latest round of tariffs.
China had earlier said it planned to reduce tariffs on goods imported from many nation, but would exclude the US. This, in turn, spooked investors, who pulled their Dollars out of the US bond market.
With no major US data releases are scheduled for today, this downtrend in the US Dollar may well continue should market trade concerns continue to ease.
GBP/CAD Exchange Rate Surges as Trump Remarks Prompt Dip in Oil Prices
The Pound Canadian Dollar (GBP/CAD) exchange rate also leapt higher yesterday, with the pairing rallying over a cent as a Tweet from Donald Trump demanding that OPEC cut oil prices, sent crude prices and the oil sensitive ‘Lonnie’ tumbling.
We protect the countries of the Middle East, they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices! We will remember. The OPEC monopoly must get prices down now!
— Donald J. Trump (@realDonaldTrump) September 20, 2018
Meanwhile the ‘Loonie’ may push higher this afternoon, with the release of Canada’s latest CPI figures, with another strong inflation reading likely to further strengthen the case for a rate hike from the Bank of Canada (BoC) in the near future.
GBP/AUD Exchange Rate Rallies as Sterling Powers Ahead
The Pound Australian Dollar (GBP/AUD) exchange rate pushed higher on Thursday, rallying from a two-week low as the ‘Aussie’ stumbled on a broad upswing in Sterling, despite easing trade concerns.
GBP/NZD Exchange Rate Fluctuates as NZ Economic Outlook Improves
The Pound New Zealand Dollar (GBP/NZD) exchange rate spiked on Thursday, with Sterling briefly surging due to the fall in the US Dollar, before falling back as robust sentiment in the ‘Kiwi’ after New Zealand’s latest GDP figures saw investors flock back to NZD.