Pound Sterling (GBP) Exchange Rates Retreat on Disappointing Construction PMI
The Pound (GBP) fell back against the majority of its peers yesterday as markets were left disappointed by the UK’s latest construction PMI.
Activity in the construction sector was shown to have been at its slowest pace in since the snow caused disruptions in March. Brexit uncertainty has resulted in clients being reluctant to commit to investing in the UK, explained the accompanying statement.
Sterling’s losses may also be extended later this morning, with a slowdown in the UK’s services index expected to cap off a lacklustre run of PMI data.
GBP/EUR Exchange Rate Losses Trimmed as Italian Official Calls to Leave the Euro
The Pound Euro (GBP/EUR) exchange rate was placed on the defensive, but was prevented from registering any major losses on Tuesday, as the single currency faced a broad market sell-off.
This came as a senior official within Italy’s ruling coalition suggested that the country may be better off if it left the currency union and returned to a national currency, heightening the gap between Rome and Brussels over Italy’s new budget.
However the Euro may look to rally today with the Eurozone’s latest retail sales figures expected to reveal that sales growth rebounded in August.
GBP/USD Exchange Rate Slumps as US Dollar Back in Vogue
The Pound US Dollar (GBP/USD) exchange rate slumped to a new three-week low during Tuesday’s trading session as demand for the ‘Greenback’ appeared to accelerate once more.
Following a mediocre couple of weeks the USD rally appeared to be back in full force yesterday, driven by the fall in the Euro and a sudden emerging market sell-off.
This rally looks set to continue through today’s session as well with the latest US ADP employment figures and ISM non-manufacturing PMI expected to paint a rosy picture of the US economy in September.
GBP/CAD Exchange Rate Falls on Trade Optimism, Soaring Oil prices
The Pound Canadian Dollar (GBP/CAD) exchange rate continued to trend lower yesterday as a weakened Sterling offered little resistance against a ‘Loonie’ buoyed by both the finalisation of the USMCA trade deal as well as surging oil prices, with crude hovering close to a four-year high.
GBP/AUD Exchange Rate Fluctuate Amid Emerging Market Sell-Off
The Pound Australian Dollar (GBP/AUD) exchange rate fluctuated in trade on Tuesday, with the pairing moving lower during the European session, before rallying overnight as the ‘Aussie’ was pressured by a slump in risk-sentiment following a sell-off of emerging market currencies.
Looking ahead the release of Australia’s latest trade balance could result in some further volatility in the ‘Aussie’ tonight, as markets predict the country’s trade surplus will have narrowed in August.
GBP/NZD Exchange Rate Rallies as Market Risk Appetite Sours
The Pound New Zealand Dollar (GBP/NZD) exchange rate mirrored GBP/AUD on Tuesday, with the pairing slumping during the European session before rocketing higher again overnight following a sharp drop in risk appetite.