Pound Sterling (GBP) Exchange Rates Mixed Following NIESR Report
Trade in the Pound (GBP) was mixed at the end of last week’s session following a report into how Brexit may impact UK finances.
The National Institute of Economic and Social Research (NIESR) warned that a no-deal Brexit could leave a £30bn shortfall in public spending over the next five years, which helped trim demand for GBP on Friday.
Brexit may take a backseat at the start of this week’s session however, with Chancellor Philip Hammond’s Autumn Budget likely to be the main catalyst for movement today.
GBP/EUR Exchange Rate Struggles in Face of ECB Confidence
The Pound Euro (GBP/EUR) exchange rate was left on the defensive at the tail end of last week, with the single currency continuing to find support thanks to the confident tone stuck by European Central Bank (ECB) President Mario Draghi following the ECB rate decision on Friday.
Looking to the week ahead, the publication of the Eurozone’s latest GDP figures are likely to shape the tone for the Euro this week, with a possible slowdown in growth in the third quarter likely to leave dent EUR sentiment.
GBP/USD Exchange Rate Subdued on US Growth Figures
The Pound US Dollar (GBP/USD) exchange rate remained rangebound on Friday, leaving the pairing stuck at a seven-week low as markets welcomed the latest US GDP figures.
While US growth was shown to have slowed following a bumper 4.2% expansion in the previous quarter, the third quarter’s 3.5% growth still came in above expectations leaving the ‘Greenback’ buoyant.
Meanwhile the main focus for USD investors this week will be on the latest US Labour report, with a robust rise in payroll numbers potentially bolstering the US dollar at the tail end of the week.
GBP/CAD Exchange Rate Rallies as Oil Prices Slide
The Pound Canadian Dollar (GBP/CAD) exchange rate rebounded from a three-week low on Friday, with the oil-sensitive ‘Loonie’ forced to give ground as crude prices slumped after Saudi Arabia warned of possible oversupply.
GBP/AUD Exchange Rate Fluctuates Amid Chinese Yuan Volatility
The Pound Australian Dollar (GBP/AUD) exchange rate initially soared at the start of Friday’s session as the ‘Aussie’ was hammered by a plunge in the Chinese Yuan (CNY), before quickly relinquishing these once more as the Yuan rallied.
GBP/NZD Exchange Rate Mixed Following Yuan Chaos
The Pound New Zealand Dollar (GBP/NZD) exchange rate was trading in a wide range at the end of last week’s session, with the pairing mirroring movement in GBP/AUD as ‘Kiwi’ investors also remained focused on the Yuan.