Pound Sterling (GBP) Exchange Rates Weaken as Ireland Roadblock Hampers Brexit Progress
The Pound (GBP) was left on the defensive yesterday as some of Wednesday’s Brexit optimism began to dissipate.
This came as the Democratic Unionist Party (DUP) stepped up its objection to any Brexit deal which could lead to new barriers between Northern Ireland and the rest of the UK.
Should this derail negotiations we could see a dramatic fall in Sterling sentiment today, especially as the absence of any notable UK data releases leaves the focus firmly on Brexit.
GBP/EUR Exchange Rate Steady amid Renewed Italian Budget Tensions
The Pound Euro (GBP/EUR) exchange rate trod water on Thursday, with GBP’s Brexit related weakness being offset by ongoing concerns over Italy’s upcoming budget.
Recent reports suggest the EU may reject the budget, forcing Rome to go back to the drawing board and leading to further uncertainty regarding the Eurozone’s third largest economy.
Looking ahead, the Euro may prove more buoyant this morning, with the single currency expected to accelerate should Eurozone industrial production have rebounded in line with expectations in August.
GBP/USD Exchange Rate Strengthened by Weak US CPI Figures
The Pound US Dollar (GBP/USD) exchange rate struck a fresh three-week high during Thursday’s session, with the ‘Greenback’ coming under pressure as US inflation slowed last month.
Headline inflation was shown to have slumped from 2.7% to 2.3% in September, the second consecutive month in which it has underperformed, potentially weakening the case for the Federal Reserve to maintain its aggressive rate hikes.
The US Dollar may rebound before the close of this week’s session however, with another robust consumer confidence reading this afternoon likely to reflect well on the currency.
GBP/CAD Exchange Rate Steady as Oil Prices Slump
The Pound Canadian Dollar (GBP/CAD) exchange rate traded in a narrow range yesterday, as the oil-sensitive ‘Loonie’ struggled to take advantage of the weakness in Sterling as a near 2% rout in Brent crude prices undermined demand for CAD.
GBP/AUD Exchange Rate Slumps as Weak US Inflation Prompts Rebound in the ‘Aussie’
The Pound Australian Dollar (GBP/AUD) exchange rate plummeted around a cent on Thursday, with the ‘Aussie’ recouping most of Wednesday’s losses as the weaker than expected US inflation figures and corresponding drop in the US Dollar helped to ease pressure on the beleaguered currency.
GBP/NZD Exchange Rate Slides as Markets Reassess Fed Rate Expectations
The Pound New Zealand Dollar (GBP/NZD) exchange rate was also hit by heavy losses yesterday as the ‘Kiwi’ was bolstered by investors revising expectations for faster rate hikes from the Federal Reserve.