Pound Sterling (GBP) Exchange Rates Rout as No-Deal Risks Grow
The Pound (GBP) witnessed some dramatic losses at the end of last week’s session, falling over 1% against almost all of its major peers, and 1.5% against the US Dollar, as the currency was rocked by renewed Brexit fears.
Following on from a disastrous EU summit in which her Chequers plan was rejected by the other EU leaders, Sterling sentiment soured as Theresa May confirmed that Brexit talks are at an impasse, thus reigniting fears of a no-deal Brexit.
With no major UK data releases this week, it looks likely that Brexit will remain centre stage, potentially resulting in further losses in Sterling should talks continue to stall.
GBP/EUR Exchange Rate Tumbles as Markets Shrug off Slowdown in Eurozone Private Sector
The rout in Sterling saw the Pound Euro (GBP/EUR) exchange rate plummet over a cent on Friday, despite the Eurozone’s latest manufacturing PMI showing factory activity in the bloc slowed to a two-year low this month.
IHS Markit reported that the Eurozone’s manufacturing index slumped from 54.6 to 53.3 in September, attributing the fall to the growing global uncertainty surrounding Brexit and US-China trade tensions.
Looking ahead, Germany’s latest business confidence survey could bolster the Euro at the start of this week’s session, with economists forecasting that sentiment will have remained elevated in September.
GBP/USD Exchange Rate Nosedives despite Easing Trade War Fears
After surging higher on Thursday, the Pound US Dollar (GBP/USD) exchange rate, collapsed on Friday, suffering its largest single day drop of 2018 as Brexit jitters sent the pairing reeling.
However while the ‘Greenback’ showed some impressive gains against Sterling its movement against other peers proved far more limited, with easing trade war concerns leading to muted demand for USD.
With a rate hike from the Federal Reserve on the cards for Wednesday it also looks unlikely we will see the US Dollar relinquishing any of these gains at the start of this week.
GBP/CAD Exchange Rate Losses Exacerbated by Canadian Inflation Figures
The Pound Canadian Dollar (GBP/CAD) exchange rate went sharply lower on Friday, with a robust Canadian inflation reading and rebound in domestic in retail sales helping the ‘Loonie’ to power ahead and leaving the pairing at a new three-week low.
GBP/AUD Exchange Rate Slides as Trade War Fears Dissipate
The Pound Australian Dollar (GBP/AUD) exchange rate slumped over a cent at the end of last week’s session, with an easing in global trade uncertainty allowing the ‘Aussie’ to exploit the weakness in Sterling.
GBP/NZD Exchange Rate Plummets as Risk Sentiment Improves
The Pound New Zealand Dollar (GBP/NZD) exchange rate tumbled nearly three cents on Friday, with easing trade tensions between the US and China helping to bolster demand for the risk-sensitive ‘Kiwi’.