Pound Sterling Exchange Rate Daily Update: GBP/USD Surges past $1.31 as US Democrats Gain Control of the House of Representatives

Pound Sterling (GBP) Exchange Rates Steady amid Fresh Brexit Speculation

The Pound (GBP) firmed on Tuesday, briefly striking new highs against the Euro and US Dollar as sentiment in the currency was buoyed by fresh Brexit optimism.

Proving once again that the Pound is driven mostly by headlines, GBP exchange rates edged higher yesterday on reports that Brexit secretary Dominic Raab gave a verbal ‘thumbs up’ as he left Downing Street following a cabinet meeting.

With no data releases of note from the UK today, it’s likely that we will see Brexit remain as the main catalyst for movement throughout the session.

GBP/EUR Exchange Rate Firms as Eurozone PMIs Disappoint

The Pound Euro (GBP/EUR) exchange rate climbed to a four-month high yesterday as the release of the Eurozone’s latest PMI figures failed to provide support for the single currency.

While Tuesday’s figures showed growth in the bloc’s private sector was stronger than previously thought in October, it still resulted in the lowest PMI reading in over two years and weakened the appeal of EUR.

Looking ahead, the Euro may remain vulnerable in trade today if Eurozone retail sales are shown to have contracted once again in September.

GBP/USD Exchange Rate Soars Following Blow to Trump in US Mid-terms

The Pound US Dollar (GBP/USD) exchange rate accelerated nearly a cent on Tuesday as the markets shunned the ‘Greenback’ for fears of a potential congressional deadlock following US midterm elections.

This came as Democrats were able to wrest control of the House of Representatives from the Republicans, something which may prevent President Trump from pushing through any more of his fiscal policies.

The fallout from the US midterms is likely to continue to drive movement in the US Dollar through today’s session, amidst a lull in any notable US data.

GBP/CAD Exchange Rate Strikes Four-Week High

The Pound Canadian Dollar (GBP/CAD) exchange rate edged higher on Tuesday as a combination of US political uncertainty and weaker oil prices weighed on the ‘Loonie’.

CAD is likely to face further pressure today, with Canada’s Ivey PMI expected to barely hold above 50, the point which separates growth and contraction in Canada’s private sector.

GBP/AUD Exchange Rate Jumps as Iron Ore Futures Stumble

The Pound Australian Dollar (GBP/AUD) exchange rate trended higher on Wednesday, with the pairing rallying from its early losses as a drop in Chinese iron ore futures, combined with the upbeat Brexit sentiment, helped to send the pairing close to a two-week high.

GBP/NZD Exchange Rate Slumps as New Zealand Unemployment Plummets

The Pound New Zealand Dollar (GBP/NZD) exchange rate suffered a sharp drop late on Wednesday, with the pairing falling to a one-week low as the ‘Kiwi’ was bolstered by a surprise drop in domestic unemployment in the third quarter.

With this in mind, investors are likely to take a renewed interest in this evening’s rate decision from the Reserve Bank of New Zealand (RBNZ), with the recent run of upbeat data suggesting the bank may strike a more hawkish tone than previously thought.

Luke Trevail

Luke studied Journalism at university but quickly moved into the financial sector, initially working in retail banking before joining TorFX in 2007. As a Senior Account Manager Luke assists in overseeing the management of the company’s exposure to currency volatility. He uses his years of foreign exchange experience to produce regular news updates exploring the latest currency movements.

Contact Luke Trevail