Pound Sterling (GBP) Exchange Rates Dampened by Brexit Uncertainty
The Pound (GBP) retreated again on Thursday, with the UK currency facing further downward pressure due to persistent Brexit uncertainties, despite some relief early in the session after Theresa May was said to have ‘won over’ her critics.
This downtrend in Sterling is likely to continue to the end of today, with the absence of any notable data providing limited upside to the UK currency.
GBP/EUR Exchange Rate Slides as Draghi Strikes Confident Tone
The Pound Euro (GBP/EUR) exchange rate suffered further losses on Thursday following the European Central Bank’s (ECB) rate decision.
While the bank’s decision to leave rates on hold failed to elicit much of a response from markets, the single currency ultimately strengthened as ECB President Mario Draghi said he remained confident about Eurozone inflation and dismissed fears regarding Italy’s budget drama.
Looking ahead, a lull in Eurozone data following on from this morning’s German consumer confidence figures could see trade in the Euro remain subdued during Friday’s session.
GBP/USD Exchange Rate Stumbles on Upbeat US Durable Goods
The Pound US Dollar (GBP/USD) exchange rate fell to a fresh six-week low yesterday as Sterling’s initial attempts to rally were cut short by some stronger-than-expected US data.
According to the US Commerce Department, domestic durable goods orders expanded a further 0.8% in September, down from the 4.6% growth seen the month prior but beating forecasts of a 1% contraction.
The US will publish its latest GDP estimate later this afternoon, with markets bracing for a possible fall in USD if the US growth moderated in the third quarter as forecast.
GBP/CAD Exchange Rate Stalls as BoC Rate Decision Remains in Focus
The Pound Canadian Dollar (GBP/CAD) exchange rate was left treading water on Thursday, with the Bank of Canada’s (BoC) policy meeting on Wednesday continuing to exert pressure on the pairing amid speculation that its hawkish statement yesterday could point to another rate hike at the next policy meeting.
GBP/AUD Exchange Rate Rebounds as the Chinese Yuan Plummets
The Pound Australian Dollar (GBP/AUD) exchange rate rallied from a three-week low overnight on Thursday, gaining over a cent as the ‘Aussie’ came under heavy selling pressure as Australia’s close trading ties with China saw a plunge in the Chinese Yuan (CNY) spook AUD investors.
GBP/NZD Exchange Rate Rallies amid Asian Market Jitters
The Pound New Zealand Dollar (GBP/NZD) exchange rate told a similar story to GBP/AUD in overnight trade, with the rout in the Yuan rattling NZD investors.