Pound Sterling (GBP) Exchange Rates Soar on Brexit Deal Hopes
The Pound (GBP) shot higher during yesterday’s session, with the UK currency recouping the majority of Tuesday’s losses amid renewed confidence in Brexit.
After clawing higher over the morning, Sterling began to kick it up a gear yesterday afternoon as Brexit Secretary Dominic Raab suggested a Brexit deal could happen by 21 November.
Further extending these gains overnight were reports that the UK had struck a deal with the EU to grant the City of London continued access to the bloc.
Whether the Pound can carry this momentum into the second half of the week will be dependent on the Bank of England (BoE) however, with any hawkish tone from the bank following today’s rate decision potentially offering additional support to GBP.
GBP/EUR Exchange Rate despite Strong Eurozone Inflation
The Pound Euro (GBP/EUR) exchange rate rallied from a monthly low on Wednesday, with the pairing showing strong gains despite some solid Eurozone CPI figures.
Data released by the European statistic agency, revealed inflation stuck 2.2% in last month, resulting in price growth nearing a six-year high but failing to drive gains in the single currency.
Looking to today’s session a lull in Eurozone data could hamper the Euro, especially if it leaves markets to turn their attention back towards Italy and its ongoing row with the EU over its budget.
GBP/USD Exchange Rate Gains as US Employment Figures Fail to Inspire
The Pound US Dollar (GBP/USD) exchange rate also made a decent recovery yesterday, with the pairing recouping a portion of its losses from the first half of the week.
This rally in GBP/USD also came in the face of some robust US employment data, with the ADP figures reporting that the US workforce expanded by another 227,000 last month.
However the release of the latest US ISM Manufacturing PMI this afternoon could be the impetus the US Dollar needs to push back once more as economists forecast the US factory sector will have enjoyed another bumper month of growth in October.
GBP/CAD Exchange Rate Advances as Canadian GDP Slows
The Pound Canadian Dollar (GBP/CAD) exchange rate advanced around a cent during Wednesday’s session, with the ‘Loonie’ offering limited resistance against Sterling’s gains as – while it beat expectations – Canadian GDP still slowed in August.
GBP/AUD Exchange Rate Gains Trimmed by Impressive Australian Trade Figure
The Pound Australian Dollar (GBP/AUD) exchange rate accelerated by around half a cent through Wednesday’s session and looked set to continue this momentum into today’s session until the release of Australia’s latest trade balance figures overnight.
This saw GBP/AUD plateau as a massive AUD$3bn trade surplus in September saw the ‘Aussie’ surge against the rest of its currency peers.
GBP/NZD Exchange Rate Cedes Gains as Safe-Haven Demand Eases
The Pound New Zealand Dollar (GBP/NZD) exchange rate also rocketed up during the European session yesterday, but similarly to GBP/AUD began to trim these gains overnight as a dip in the US Dollar following the news of a possible Brexit financial services deal helped to strengthen demand for the ‘Kiwi’.