Pound Sterling Exchange Rate Daily Update: GBP/USD Benefits as EU Officials Suggest Brexit Deal ‘Very Close’

Pound Sterling (GBP) Exchange Rates Bolstered as Brexit Deal ‘Very Close’

The Pound (GBP) appreciated at the end of last week’s session, with the UK currency extending Thursday’s gains following news that the UK and EU may be close to reaching a Brexit agreement.

This came as a member of Michel Barnier’s EU negotiation team was reported to have told national diplomats that they were ‘very close’ to reaching a deal with the UK.

With the EU summit on the 18th fast approaching, Brexit is likely to remain the main catalyst for movement in the Pound this week, something which could see Sterling receive a considerable boost if an agreement is actually finalised.

GBP/EUR Exchange Rate Strikes Three-Month High on Italy Concerns

The Pound Euro (GBP/EUR) exchange rate climbed to its best levels since the end of June on Friday as investors expressed doubts regarding the forecasts behind Italy’s new budget deficit targets, while Deputy Prime Minister Matteo looked to reignite a row with the EU by accusing European Commissioners of wrecking Europe.

These concerns also saw markets shrug off Germany’s latest factory order figures despite order growth rebounding faster-than-expected in August.

Looking to the start of this week, the Euro may struggle to recoup its losses today after Germany’s industrial production figures came in below expectations earlier   this morning.

GBP/USD Exchange Rate Jumps as Employment Growth Disappoints

The Pound US Dollar (GBP/USD) exchange rate climbed around 0.5% on Friday as the ‘Greenback’ came under pressure as US payrolls expanded at a notably slower pace than expected in September.

This offset the accompanying unemployment figures which saw the US jobless rate fall to its lowest since 1969.

The US Dollar may look to bounce back this week however as markets brace for another jump in US inflation towards the end of session.

GBP/CAD Exchange Rate Advances as Oil Prices Slump

Despite Canada’s employment growth figures rebounding stronger than expected in September, the Pound Canadian Dollar (GBP/CAD) exchange rate was still driven lower on Friday as the oil-sensitive ‘Loonie’ was undermined by a drop in crude prices.

GBP/AUD Exchange Rate at Two-Year High as USD Demand Bites

The Pound Australian Dollar (GBP/AUD) exchange rate capped off last week’s session with another sharp upswing, bringing the pairing’s gains for the week to over five cents as the ‘Aussie’ continued to struggle as investors shunned the currency in favour of the US Dollar.

GBP/NZD Exchange Rate Jumps as Risk Appetite Remains Weak

The Pound New Zealand Dollar (GBP/NZD) exchange rate also surged ahead again on Friday, with the ‘Kiwi’ retreating amid a drop in market risk appetite.

Luke Trevail

Luke studied Journalism at university but quickly moved into the financial sector, initially working in retail banking before joining TorFX in 2007. As a Senior Account Manager Luke assists in overseeing the management of the company’s exposure to currency volatility. He uses his years of foreign exchange experience to produce regular news updates exploring the latest currency movements.

Contact Luke Trevail