Pound Sterling Exchange Rates Daily Update: GBP/USD Drops as Fed Hikes Interest Rates

Pound Sterling (GBP) Exchange Rates Stall as Retail Sales Growth Slows

The Pound (GBP) trod water on Wednesday as a lull in Brexit headlines left investors to focus on the Confederation of British Industry’s (CBI) latest retail survey.

The figures revealed that while sales continued to show growth, retailers reported that activity had begun to slow compared with August, leaving the data ultimately to have a limited impact on Sterling.

Looking to today’s session the main focus for GBP investors will likely be on a speech by Bank of England (BoE) Governor Mark Carney later this afternoon, with the Pound potentially strengthening if he strikes a broadly upbeat tone.

GBP/EUR Exchange Rate Flat as ECB Backtracks on Draghi Comments

Despite a few fluctuations yesterday, the Pound Euro (GBP/EUR) exchange rate remained largely rangebound through the session amid a lull in Eurozone data.

This left markets to focus on comments by ECB President Mario Draghi, dampening speculation the bank could raise interest rates earlier than expected next year.

Today’s Eurozone business confidence figures are expected to confirm business sentiment in the bloc continued to deteriorate this month, potentially dragging on the single currency.

GBP/USD Exchange Rate Stable as Fed Hikes Rates

The Pound US Dollar (GBP/USD) exchange rate traded in a narrow range yesterday, with the Federal Reserve’s rate hike causing the pound to lose around 0.4% against the US dollar following the move.

This has left markets to focus on the bank’s forward guidance, with a slightly less optimistic tone from Fed Chair Jerome Powell prompting limited gains in the US dollar.

The US Dollar may look to advance later today, with an expected rebound in US durable goods orders last month likely to bolster demand for USD.

GBP/CAD Exchange Rate Flat Despite Robust Oil Prices

The Pound Canadian Dollar (GBP/CAD) exchange rate traded in a narrow range yesterday despite oil prices breaking above $82 again, with the traditionally oil-sensitive ‘Loonie’ seeing limited upside from the recent surge in prices due to ongoing production constraints.

However CAD exchange rates could be given a major booster later this evening should Bank of Canada (BoC) Governor Stephen Poloz hint during a speech that the bank may be close to its next rate hike.

GBP/AUD Exchange Rate Fluctuates as Fed Raises Interest Rates

The Pound Australian Dollar (GBP/AUD) exchange rate was met by volatility on Wednesday, with trade in the ‘Aussie’ proving erratic ahead of the Federal Reserve’s rate decision as risk sentiment fluctuated.

GBP/NZD Exchange Rate Subdued Following RBNZ Meeting

The Pound New Zealand Dollar (GBP/NZD) exchange rate was left trending narrowly overnight on Wednesday following the Reserve Bank of New Zealand’s own rate decision, which saw the bank leave rates on hold as expected.

Luke Trevail

Luke studied Journalism at university but quickly moved into the financial sector, initially working in retail banking before joining TorFX in 2007. As a Senior Account Manager Luke assists in overseeing the management of the company’s exposure to currency volatility. He uses his years of foreign exchange experience to produce regular news updates exploring the latest currency movements.

Contact Luke Trevail


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