Pound Sterling (GBP) Exchange Rates Buoyed by Merkel’s Brexit Optimism
The Pound (GBP) firmed in trade on Tuesday as German Chancellor Angela Merkel suggested a Brexit deal could be reached in October.
However, Merkel’s accompanying warning that there was more hard work needed from the UK to provide clarity on what it wants out of Brexit prevented Sterling from finding any significant gains.
Looking ahead the Pound is likely to slide today, with the latest retail survey from the Confederation of British Industry (CBI) expected to show a drop in retail activity this month.
GBP/EUR Exchange Rate Edges Up amid ECB Rate Speculation
The Pound Euro (GBP/EUR) exchange rate crept up yesterday, with the single currency holding off some off Sterling’s advances amidst rising speculation that the European Central Bank (ECB) may target a rate hike earlier than expected next year.
Markets had previously locked in December 2019 as the most likely date for the ECB’s next hike, but they have now begun to reassess this forecast in light of hawkish inflation comments from ECB President Mario Draghi on Monday.
Meanwhile the Euro may struggle again today, with an empty data calendar providing limited catalyst for movement in EUR exchange rates.
GBP/USD Exchange Rate Strengthen in Run up to Fed Rate Decision
The Pound US Dollar (GBP/USD) exchange rate trended higher on Tuesday as investors shied away from the currency ahead of today’s rate decision by the Federal Reserve.
With the bank widely forecast to raise interest rates today and the move having been priced in for months USD investors appeared to see little upside in the US Dollar through the first half of this week’s session.
Instead markets will be focused on the bank’s future guidance amid an unclear policy outlook for 2019, with the US Dollar potentially surging in the wake of today’s policy statement if the Fed appears to signal further hikes are ahead.
GBP/CAD Exchange Rate Advances amid Slow Progress in NAFTA Talks
The Pound Canadian Dollar (GBP/CAD) exchange rate pushed higher again yesterday, with concerns that the US and Canada may be dragging their feet in the renegotiation of the NAFTA trade deal saw the oil-sensitive ‘Loonie’ weaken despite crude prices surging above $82 a barrel.
GBP/AUD Exchange Rate Climbs as Trade Uncertainty Swells
The Pound Australian Dollar (GBP/AUD) exchange rate climbed over half a cent on Tuesday, adding to the near 1% gains seen in the pairing at the start of the week as investors continued to shun the ‘Aussie’ in light of ongoing trade tensions between the US and China.
GBP/NZD Exchange Rate Retreats as NZ Business Confidence Jumps
After swinging higher during the European session on Tuesday, the Pound New Zealand Dollar (GBP/NZD) exchange rate fell back again overnight as NZD was bolstered by some stronger-than-expected domestic business confidence figures.
Looking forward, the Fed won’t be the only central bank in focus today as the Reserve Bank of New Zealand (RBNZ) also delivers its latest rate decision later this evening, with the ‘Kiwi’ potentially rising if New Zealand’s impressive second quarter GDP figures lead to a more hawkish outlook from the bank.