Pound Sterling (GBP) Exchange Rates Bolstered by Reports of Irish Support for PM’s Brexit Plan
The Pound (GBP) was back on the offensive yesterday, with the UK currency advancing against the majority of its peers following media reports that Ireland will support Theresa May’s proposals for an all-UK customs union with the EU.
With the issue of the Irish border remaining as one of the last major hurdles in finalising a Brexit deal, the news was well received by GBP investors who hope it will help to expedite negotiations.
Looking to today’s session, Sterling may hope to build on these gains this morning if Halifax’s UK house price index for September has risen in line with expectations.
GBP/EUR Exchange Rate Gains Limited as USD Weakness Buoys Euro
While the Pound Euro (GBP/EUR) exchange rate was able to move higher on Thursday, the pairing’s gains were notably lower than other Sterling pairings.
With no notable data releases to lend it support, the Euro’s resilience yesterday appeared mostly driven by the single currency’s gains from a fall in the US Dollar (USD).
Meanwhile a strong rebound in German Factory orders may lend some support to the Euro this morning as order growth was shown to have shot past expectations.
GBP/USD Exchange Rate Buoyed by Profit Taking in the US Dollar
The Pound US Dollar (GBP/USD) exchange rate rallied over half a cent from a three-week low on Thursday as broad weakness in the ‘Greenback’ left it unable to fend off Sterling’s advances.
This fall in USD came after the Dollar index – which measures the US Dollar against a basket of other currencies – surged to a six-week high on Wednesday, suggesting the ‘Greenback’ may have been undermined by a bout of profit taking.
Markets are bracing for a possible rally in the US Dollar later this afternoon however as economists forecast another robust rise in payrolls will see the US unemployment rate fall to 3.8% in September.
GBP/CAD Exchange Rate Climbs Following Sharp Drop in Ivey PMI
The Pound Canadian Dollar (GBP/CAD) exchange rate surged higher yesterday as the ‘Loonie’ came under pressure following a dramatic drop in Canada’s latest Ivey PMI as well as an easing in oil prices.
However the Canadian Dollar may look to recoup its losses later this afternoon, with a rebound in domestic employment last month set to see Canadian unemployment fall in September.
GBP/AUD Exchange Rate Soars as Commodity Prices Slump
The Pound Australian Dollar (GBP/AUD) exchange rate continued to soar higher on Thursday, with the pairing climbing almost two cents as a broad fall in commodity prices caused markets to shun trade sensitive currencies such as the ‘Aussie’.
GBP/NZD Exchange Rate Jumps as Markets Remain Risk-Off
The Pound New Zealand Dollar (GBP/NZD) exchange rate mirrored the movement of GBP/AUD yesterday, with the ‘Kiwi’ plummeting as USD strength and falling commodity prices saw risk-appetite weaken.