Pound Sterling (GBP) Exchange Rates Rally on Upbeat UK Wage Figures
The Pound (GBP) enjoyed a sizable rally on Tuesday, with Brexit being put on the backburner as markets cheered the release of some stronger-than-expected wage figures from the UK.
Data from the ONS revealed that wage growth unexpectedly jumped from 2.9% to 3.1% in August to rise at its fastest pace since 2009, lifting Sterling sentiment as it helped to bolster hopes that the Bank of England (BoE) would be more willing to raise interest rates after Brexit.
The release of the UK’s latest CPI figures this morning may prove less supportive of the Pound however as economists forecast that inflation will have slowed again in September.
GBP/EUR Exchange Rate Advances as Eurozone Economic Sentiment Nosedives
The Pound Euro (GBP/EUR) exchange rate climbed back above €1.14 yesterday as the single currency struggled to stem its losses following a collapse in Eurozone economic sentiment.
The ZEW survey revealed confidence in the bloc struck its lowest levels since the Eurozone crisis this month as the outlook from respondents becomes increasingly pessimistic in the face of Brexit and rising trade tensions.
Looking ahead, the Euro may trade a little firmer this morning as the Eurozone’s own CPI figures are expected to confirm inflation ticked up to 2.1% last month.
GBP/USD Exchange Rate Jumps despite US Job Opening Reaching an All-Time High
The Pound US Dollar (GBP/USD) exchange rate advanced over half a cent on Tuesday as the ‘Greenback’ failed to put up a fight despite record high US jobs figures.
While the JOLTs figures revealed US job opening climbed to an all-time high of 7.13m in August, USD investors appeared unfazed by the data, resulting in the US Dollar losing ground through the session.
Meanwhile the focus for USD investors will likely turn back towards US monetary policy this evening, potentially strengthening the ‘Greenback’ as the Federal Reserve publishes the minutes from its most recent policy meeting.
GBP/CAD Exchange Rate Muted as BoC Rate Expectations Rise
The Pound Canadian Dollar (GBP/CAD) exchange rate remained rangebound on Tuesday, with the ‘Loonie’ showing remarkable resilience as it remained buoyed by Bank of Canada (BoC) rate speculation following the bank’s upbeat business survey on Monday.
GBP/AUD Exchange Rate Retreats as Risk Sentiment Rebounds
After spiking during the European session the Pound Australian Dollar (GBP/AUD) exchange rate fell back yesterday evening as an upswing in market risk appetite saw investors flock back to AUD.
However ‘Aussie’ may come under pressure overnight on Wednesday, with Australia’s latest labour figures expected to show employment growth slowed sharply last month after a strong showing in August.
GBP/NZD Exchange Rate Slides as NZ Inflation Continues to Buoy the ‘Kiwi’
The Pound New Zealand Dollar (GBP/NZD) exchange rate met a similar fate to GBP/AUD yesterday with the pairing giving up its initial gains overnight as the ‘Kiwi’ remained buoyed by New Zealand’s latest inflation figures.