Pound Sterling (GBP) Exchange Rates Muted as Hammond Delivers Autumn Budget
The Pound (GBP) was left subdued at the end of yesterday’s session as markets reacted to Chancellor Philip Hammond’s Autumn Budget. By this morning, the Pound was starting to see broad based losses.
While Hammond announced this was to mark the ‘end of austerity’ markets seemed largely unfazed by the Budget, with even the raising of the Office for Budget Responsibility (OBR) growth forecast from 1.3% to 1.6% failing to garner a reaction from investors.
Meanwhile in the face of limited UK data today, the Pound may stumble further as it is left vulnerable to Brexit uncertainty once more.
GBP/EUR Exchange Rate Steady as Merkel Announces Departure
The Pound Euro (GBP/EUR) exchange rate crept higher on Monday, with the single currency ceding ground following the announcement that Angela Merkel would step down as German Chancellor at the end of her current term in 2021.
Merkel’s announcement came on the back of elections in the Hesse region over the weekend, which saw her party and its coalition partners register huge losses, leaving EUR investors rattled throughout much of yesterday’s session.
Looking ahead the focus will now turn to the Eurozone’s latest GDP figures, with the Euro potentially losing more ground if they reveal growth in the bloc was trimmed in the third quarter.
GBP/USD Exchange Rate Muted as US Personal Incomes Show Modest Growth
The Pound US Dollar (GBP/USD) exchange rate remained rangebound throughout Monday’s trading session as data revealed personal income in the US had risen slower than was expected last month.
According to the US Commerce Department, personal income rose 0.2% in September, missing expectations it would accelerate to 0.4%.
In the absence of any notable US data today, trade in the US Dollar is likely to remain subdued as investors eye the US ADP employment figures on Wednesday.
GBP/CAD Exchange Rate Stable as Oil Prices Slide
The Pound Canadian Dollar (GBP/CAD) exchange rate traded in a narrow range at the start of the week, with the oil-sensitive ‘Loonie’ struggling to advance as it was undermined by another fall back in crude prices.
GBP/AUD Exchange Rate Slumps as Chinese Yuan Rebounds
The Pound Australian Dollar (GBP/AUD) exchange rate briefly accelerated on Monday before falling back by the end of the European session and then extending its losses overnight as the ‘Aussie’ rallied in line with a rebound in the Chinese Yuan (CNY).
GBP/NZD Exchange Rate Slumps as Risk Appetite Rises
The Pound New Zealand Dollar (GBP/NZD) exchange rate slumped close to a two-month low overnight on Monday, as the ‘Kiwi’ was bolstered by rising risk sentiment following comments from US President Donald Trump in which he predicted the US will strike a ‘great trade deal’ with China.