Pound Sterling (GBP) Exchange Rates Lifted by Brexit Deal Hope
The Pound (GBP) continued to appreciate yesterday, buoyed by hopes that the UK and EU could soon finalise a Brexit deal.
However slightly dampening Sterling sentiment was the release of the UK’s latest GDP figures, which revealed the UK economy stalled in August, undermining a 0.7% expansion over the summer.
Meanwhile today will see the focus briefly turn to the Bank of England, with a speech by Gertjan Vlieghe, potentially lifting GBP exchange rates if the recent Brexit optimism leads to a more hawkish outlook from the BoE policymaker.
GBP/EUR Exchange Rate Strikes Fresh Three-Month Highs on Italy Budget Fears
Proving we’re not out of the woods yet when it comes to Italy’s new budget, the Pound Euro (GBP/EUR) exchange rate edged up to its highest levels since mid-June on Wednesday morning.
While Italy’s finance minister, Giovanni Tria attempted to ease market concerns, his comments appeared to fall on deaf ears, with analysts fearing the impact any increased spending will have on Italy’s debt pile.
This afternoon will bring the release of the minutes from the European Central Bank’s latest policy meeting, although with no surprises expected its impact on the Euro may prove negligible.
GBP/USD Exchange Rate Jumps as Safe-Haven Demand Slides
The Pound US Dollar (GBP/USD) exchange rate climbed to a new three-week high yesterday, breaking though the $1.32 barrier as rising Brexit optimism saw safe-haven demand slide.
Further dragging on the ‘Greenback’ was the continued slide in US 10-year bond yields as they continued to retreat from the seven-year high struck earlier in the week.
Looking ahead, the focus for markets today will be on the latest US CPI figures, with the US Dollar poised to slide if inflation slides for a second consecutive month.
GBP/CAD Exchange Rate Accelerates as Oil Prices Tumble
The Pound Canadian Dollar (GBP/CAD) exchange rate climbed around half a cent on Wednesday as a price slide in Canada’s biggest export led to losses in the ‘Loonie’ with crude prices crumbling as much as 1% through the session after the IMF lowered its global growth forecasts and suggested demand for oil may slump.
GBP/AUD Exchange Rate Skyrockets as Slump in Stocks Prompts Market Jitters
The Pound Australian Dollar (GBP/AUD) exchange rate jumped by around two cents in yesterday’s session, with the ‘Aussie’ facing considerable pressure as a slump in global stock markets spooked investors leading them to shun AUD.
GBP/NZD Exchange Rate Rallies as Markets Panic
The Pound New Zealand Dollar (GBP/NZD) exchange rate also rallied on Wednesday, with the ‘Kiwi’ suffering a similar fate to the ‘Aussie’ following the rout in stock markets.