Pound Sterling (GBP) Exchange Rates Accelerate on UK Services PMI
The Pound (GBP) saw broad gains on Wednesday with the continued expansion of the UK service sector in September helping to lift the UK currency.
However putting a slight dampener on GBP was Theresa May’s Conservative Party conference speech, with markets left disappointed as she stuck to her guns on her Chequers Brexit plan, repeating her statement that ‘no-deal is better that a bad deal’.
The absence of any UK data looks to hamper Sterling today, with the currency potentially weakening if the focus remains on Brexit.
GBP/EUR Exchange Rate Fluctuates as Italy Backs Down on Budget
Trade in the Pound Euro (GBP/EUR) exchange rate proved to be mixed yesterday, with the single currency initially rallying as Rome agreed to trim its budget deficit targets over the next three years.
However the Euro failed to consolidate these gains as the new agreement failed to dispel lingering concerns over Italy’s fiscal stability, while another contraction in Eurozone retail sales also weighed on sentiment.
With Eurozone data releases also looking light on the ground today, the Euro is likely to remain muted as markets digest the latest developments regarding Italy’s budget.
GBP/USD Exchange Rate Stalls on Fed Remarks
The Pound US Dollar (GBP/USD) exchange rate was left rangebound following yesterday’s session as Sterling’s initial rally was cut short by comments from Federal Reserve policymaker Charles Evans in which he suggested the Fed could do more to bolster US inflation while voicing his support for a December rate hike.
Further lifting sentiment in the US Dollar was the release of the US ADP employment figures, which revealed the private sector hired 230,000 workers in September, the largest number of new hires since February.
Looking ahead the US Dollar looks poised to push its advantage today, with the currency likely to be bolstered by a rebound in US factory orders in August.
GBP/CAD Exchange Rate Edges Higher as NAFTA Rally Fades
The Pound Canadian Dollar (GBP/CAD) exchange rate ticked higher during yesterday’s session, with the relief from the signing of a revamped NAFTA agreement beginning to fade. limiting the appeal of the ‘Loonie’.
GBP/AUD Exchange Rate Jumps as USD Surges
The Pound Australian Dollar (GBP/AUD) exchange rate roared higher on Wednesday, with the pairing gaining around two cents, as the ‘Aussie’ was hammered by surging demand for the US Dollar (USD).
Meanwhile the release of Australia’s latest retail sales figures could help to bolster the ‘Aussie’ overnight amid forecasts sales growth will have rebounded in August.
GBP/NZD Exchange Rate Rockets, Nears NZ$2.00
The Pound New Zealand Dollar (GBP/NZD) exchange rate soared to a new two-week high yesterday, bringing the pairing within touching distance of NZ$2.00 as the resurgent US Dollar weighed on market risk appetite.