Pound Sterling (GBP) Exchange Rates Stumble amid Ongoing Brexit Uncertainty
Despite a lack of new headlines it appeared that Brexit uncertainty was the main catalyst behind the Pound’s (GBP) weakness on Tuesday, with the UK currency giving up ground against the majority of its peers.
Applying further pressure to GBP exchange rates yesterday was also a marked slump in UK retail activity in October as shown by the Confederation of British Industry’s (CBI) latest distributive trade index.
In the absence of any notable data, Sterling may remain on the defensive today, although with markets bracing for the Bank of England’s ‘super Thursday’ any downsides may prove limited.
GBP/EUR Exchange Rate Slumps despite Shock Drop in Eurozone GDP
The Pound Euro (GBP/EUR) exchange rate fell back on Tuesday, registering modest losses despite Eurozone GDP coming in at just 0.2% in the third quarter against the 0.4% forecast by economists.
The resilience of the single currency appears to be in large part because of the subsequent release of Germany’s CPI figures in the afternoon, which showed inflation in the Eurozone’s largest economy climbed to a decade-high in October.
The Eurozone economy will remain in focus through today’s session as well, with the release of the bloc’s latest CPI figures potentially strengthening the currency if both headline and core inflation accelerate in line with expectations.
GBP/USD Exchange Rate Strikes Two-Month Low
The Pound US Dollar (GBP/USD) exchange rate struck a two-month low yesterday, with the pairing testing the lower boundaries of $1.27 for the first time since mid-August.
However with no domestic data of its own to offer fresh buying impetus the ‘Greenback’s’ gains in the wider currency market proved largely negligible.
Looking ahead, USD investors will be hoping for another solid ADP employment reading from the US today, with the US Dollar potentially strengthening if the number of jobs continued to expand at a solid pace thoughout October.
GBP/CAD Exchange Rate Stumble in Advance of Poloz Testimony
The Pound Canadian Dollar (GBP/CAD) exchange rate dropped around half a cent in trade during Tuesday’s trading session ahead of a testimony from Bank of Canada (BoC) Governor Stephen Poloz amid hopes he will offer fresh clues as to the Bank’s policy outlook.
The Canadian Dollar may begin to give up ground later today however, with an expected slowdown in Canadian GDP in August potentially dragging on the currency.
GBP/AUD Exchange Rate Knocked Back on Trump Trade Optimism
The Pound Australian Dollar (GBP/AUD) exchange rate plunged over 1% to strike a two-month low on Tuesday following comments from Donald Trump on Monday in which he predicted that the US is on track to create a ‘great’ trade deal with China.
The Australian Dollar may look to build on these gains later tonight as well, as economists forecast data will show a slight pickup in Australia’s trade surplus in August.
GBP/NZD Exchange Rate Tumbles as Risk Appetite Grows
The Pound New Zealand Dollar (GBP/NZD) exchange rate told a similar story to GBP/AUD on Tuesday, with the trade sensitive ‘Kiwi’ soaring on hopes a US-China trade deal may not be far off.