Pound Sterling (GBP) Exchange Rates Stall as UK Q1 Growth Revised Lower
The Pound (GBP) found itself on the defensive at the end of last week’s session, with the currency trending lower against the majority of its peers as the UK’s latest GDP figures saw domestic growth revised down to just 0.1% in the first quarter.
The accompanying business investment figures also proved negative for Sterling on Friday as Brexit uncertainty saw investment contract a further 0.7% between June and April.
This downtrend in GBP exchange rates may continue into this week as well, with the Pound poised to fall today if activity in the UK’s manufacturing sector slowed again in September as forecast.
GBP/EUR Exchange Rate Steady amid Italian Budget Concerns
The Pound Euro (GBP/EUR) exchange rate was the only major Sterling pairing prevented from falling at the end of last week’s session.
This came as Italy’s government passed a new budget which seeks to target a deficit of 2.4% of GDP, flouting the EU’s cap of 2% and prompting concerns that this could add to Italy’s already sizable debt pile.
However the Euro could open this week’s session on a more positive note if the Eurozone’s latest labour figures reveal unemployment in the bloc fell in August.
GBP/USD Exchange Rate Tumbles on Euro Weakness
The Pound US Dollar (GBP/USD) exchange rate slumped to a fresh two-week low on Friday, with demand for the ‘Greenback’ surging following the drop in the Euro (EUR).
This allowed the US Dollar to build on momentum from earlier in the week thanks to a hawkish rate hike from the Federal Reserve as well as bumper US GDP figures.
Looking ahead the US will publish its own manufacturing PMI later this afternoon, with USD likely to enjoy further gains if the US records another robust expansion in factory activity.
GBP/CAD Exchange Rate Slumps as Canadian GDP Beats Expectations
The Pound Canadian Dollar (GBP/CAD) exchange rate tumbled by around a cent on Friday, almost completely erasing the pairing’s gains for the week as the ‘Loonie’ shot higher in the wake of Canada’s latest GDP figures, with stronger-than-expected growth bolstering expectations of a rate hike from the Bank of Canada as soon as this month.
GBP/AUD Exchange Rate Weakens Amid Uptick in Copper Prices
The Pound Australian Dollar (GBP/AUD) exchange rate slumped at the end of last week’s session, with the pairing falling over a cent as rising commodity prices, particularly copper, helped to bolster demand for the ‘Aussie’.
Meanwhile AUD investors will be bracing for the Reserve Bank of Australia’s (RBA) latest rate decision overnight on Monday, with movement in the ‘Aussie’ likely to be driven by the tone of the bank’s policy statement.
GBP/NZD Exchange Rate Plummets as Commodity Prices Strengthen
The Pound New Zealand Dollar (GBP/NZD) exchange rate suffered sharp losses on Friday as Sterling weakness coupled with rising commodity prices allowed the ‘Kiwi’ to surge.