Pound Sterling (GBP) Exchange Rates Rally as Raab Optimistic Brexit Deal Can be Done
The Pound’s (GBP) rollercoaster ride continued at the start of this week’s session as the UK currency surged against most of its peers with it rebounded from a heavy sell-off on Friday.
The catalyst for this upswing in Sterling appeared to be comments by Brexit minister Dominic Raab as he suggested he was confident a deal between the EU and UK can still be done.
Barring any other Brexit developments, movement in the Pound today may be driven by a speech from the Bank of England’s (BoE) Gertjan Vlieghe, with a broadly optimistic outlook from the policymaker likely strengthening GBP.
GBP/EUR Exchange Rate Gains Trimmed by Draghi Comments
While the Pound Euro (GBP/EUR) exchange rate was able edge higher on Monday, the gains were notably more subdued than in other Sterling pairings following comments from European Central Bank President Mario Draghi.
Speaking at a hearing in Brussels Draghi spoke of a ‘vigorous pick-up in underlying inflation’ while also sounding upbeat on further wage growth.
Meanwhile a lack of notable Eurozone data today may leave the focus on France’s business confidence figures, with a slight dip in sentiment potentially dragging on the Euro this morning.
GBP/USD Exchange Rate Advances as Markets Await Fed Rate Decision
The Pound US Dollar (GBP/USD) exchange rate surged higher yesterday, with a buoyant GBP facing little resistance from USD as the ‘Greenback’ entered a holding position ahead of the Federal Reserve’s upcoming rate decision.
While the bank is widely expected to vote to raise interest rates on Wednesday, most investors have already priced in the move, leaving limited upside for the US Dollar.
In the meantime, the ongoing trade tensions between the US and China are likely to be the main source of movement in USD exchange rates, with the US Dollar potentially strengthening if further uncertainty bolsters demand for safe-haven currencies.
GBP/CAD Exchange Rate Jumps as NAFTA Concerns Bite
The Pound Canadian Dollar (GBP/CAD) exchange rate climbed around a cent at the start of this week’s session, with the ‘Loonie’ losing amid rising fears that the US and Canada will fail to reach a new NAFTA agreement before the deadline at the end of this month.
GBP/AUD Exchange Rate Jumps as China Cancels Trade Talks with the US
The Pound Australian Dollar (GBP/AUD) exchange rate punched higher at the start of this week’s session, with the pairing advancing almost 1% on the news that China has cancelled upcoming trade talks with the US, quashing hopes that tensions between the two countries had begun to cool.
GBP/NZD Exchange Rate Bolstered by Trade Uncertainty
The Pound New Zealand Dollar (GBP/NZD) exchange rate suffered a similar fate to GBP/AUD on Monday, with the pairing racing around two cents higher on fears that trade tensions between the US and China may be flaring up once again.
Looking to later in the session New Zealand will publish its latest trade balance figures, providing the final snapshot of the domestic economy ahead of the Reserve Bank of New Zealand’s (RBNZ) rate decision on Wednesday.