Pound Sterling (GBP) Exchange Rates Stable despite Weak UK Retail Sales
The Pound (GBP) slumped during Thursday’s session as markets reacted to the latest UK retail sales figures and Brexit developments.
Retail sales figures published by the Office for National Statistics (ONS) yesterday revealed sales growth contracted faster than expected last month, reflecting poorly on GBP exchange rates.
Brexit uncertainty then applied further pressure in the afternoon as EU leaders shelved plans for a November summit, stating not enough progress had been made in talks.
However Barring any other notable Brexit developments, GBP investors are likely to focus on a speech from Markey Carney today, with markets on the lookout for any signs the recent pick-up in wages will lead to a more hawkish outlook from the Bank of England going forward.
GBP/EUR Exchange Rate Muted as Italy Remains in Focus
The Pound Euro (GBP/EUR) exchange rate remained range bound yesterday, with markets continuing to remain wary of the single currency amid lingering Italian budget concerns.
While Italy’s contentious budget was not on the agenda at yesterday’s EU summit meeting, a number of EU leaders still expressed their concerns that the plans could contribute to Italy’s already sizable debt.
GBP/USD Exchange Rate Slide to Two-week Low in Wake of Hawkish Fed Minutes
The Pound US Dollar (GBP/USD) exchange rate struck a new two-week low during yesterday’s session, as the ‘Greenback’ remained buoyed by Wednesday’s hawkish Fed minutes.
The minutes revealed Fed policymakers were largely united in pushing for further rate hikes, fuelling demand for the US Dollar.
Investors will be looking out for a speech by the Robert Kaplan later today, with further gains in USD possible if the Fed policymaker echoes the minutes’ hawkish sentiment.
GBP/CAD Exchange Rate Muted as Oil Prices Slump
Oil continued to slump throughout Thursday’s session, driving prices further below $80 a barrel and helping to trim the losses in the Pound Canadian Dollar (GBP/CAD) exchange rate as markets shunned the oil-sensitive ‘Loonie’.
The Canadian Dollar looks poised to end the week on a high note however, with a robust inflation reading potentially lifting the currency this afternoon as it bolsters Bank of Canada (BoC) rate expectations.
GBP/AUD Exchange Rate Slides as Commodity Prices Rally
The Pound Australian Dollar (GBP/AUD) exchange rate fell roughly half a cent on Thursday, with the ‘Aussie’ finding support as commodity prices continued to grind higher, with a sustained rally in iron ore prices over the last five days being particularly welcomed by AUD investors.
GBP/NZD Exchange Rate Slides as ‘Kiwi’ Remains Buoyed by Inflation Figures
The Pound New Zealand Dollar (GBP/NZD) exchange rate fell back below NZ$1.99 for the first time in two weeks yesterday as the ‘Kiwi’ remained buoyed by some higher domestic inflation figures earlier in the week.