Pound Sterling (GBP) Exchange Rates Bolstered by Talk of Brexit Compromise
The Pound (GBP) shot higher against most of its peers on Monday, with the currency bolstered by reports Theresa May is preparing to offer a compromise on the Irish border.
The news was well received by GBP investors on hopes it could get Brexit talks back on track, and helped Sterling sentiment to recover following the publication of a mixed manufacturing PMI earlier in the session.
Looking ahead, markets will be on the lookout for the UK’s latest construction PMI later this morning, with the Pound potentially sliding if activity fell in line with expectations last month.
GBP/EUR Exchange Rate Bolstered by Lingering Italy Budget Concerns
The Pound Euro (GBP/EUR) exchange rate advanced around 0.4% yesterday as EUR investors remained cautious amid ongoing concerns about Italy’s new budget deficit and the country’s debt sustainability.
While the Eurozone’s latest employment figures revealed the bloc’s jobless rate fell to 8.1%, its lowest levels since the financial crash in 2008, Italy’s budget concerns saw the Euro fall in the face of a reinvigorated Pound.
GBP/USD Exchange Rate Steady on Solid US Manufacturing PMI
The Pound US Dollar (GBP/USD) exchange rate closed Monday’s European session only slightly up from the day’s starting levels as another bumper US manufacturing PMI helped to buoy USD.
While the ISM manufacturing PMI revealed US factory growth slowed slightly in September, given that August saw activity rocket to a 14-year high it was of little concern to investors.
Looking ahead, a speech by Federal Reserve Chair Jerome Powell may help to bolster the US Dollar this afternoon should he continue to strike a hawkish tone regarding the US economy and the possibility of future rate hikes.
GBP/CAD Exchange Rate Tumbles as Canada and US Agree New Trade Arrangement
The Pound Canadian Dollar (GBP/CAD) exchange rate fell to a one-month low at the start of this week’s session as markets welcomed the creation of the United States, Mexico, Canada Agreement (USMCA), the new trade deal to replace NAFTA.
While the terms of the new deal are similar to the old agreement, CAD investors were overjoyed as it ends months of uncertainty regarding Canada’s future trade relationship with its neighbours.
GBP/AUD Exchange Rate Steady as RBA Leaves Rates Unchanged
Barring a brief spike the Pound Australian Dollar (GBP/AUD) exchange rate has been fairly steady over the last 24 hour, with markets appearing calm as the Reserve Bank of Australia (RBA) left interest rates unchanged and maintained its neutral bias following its latest policy meeting.
GBP/NZD Exchange Rate Fluctuates as NZ Business Confidence Sinks
The Pound New Zealand Dollar (GBP/NZD) exchange rate saw considerable volatility on Monday as the New Zealand Institute of Economic Research’s quarterly business confidence figures revealed domestic business sentiment fell to a nine-year low in the third quarter.
Meanwhile the ‘Kiwi’ may stumble again later this afternoon, should prices of dairy – New Zealand’s single largest export – fall again at today’s auction.