Pound Sterling Exchange Rates Daily Update: GBP/USD Bolstered by US Political Uncertainty after Midterms

Pound Sterling (GBP) Exchange Rates Steady on Reports of ‘Brexit Phone Call’

The Pound (GBP) held close to multi-week highs against many of its peers yesterday as Brexit optimism continued to buoy the UK currency.

Further lifting hopes on Wednesday were reports that EU President Donald Tusk and Theresa May had spoken on the phone in an effort to step up efforts to reach a deal.

In the absence of any notable UK economic data, Brexit is likely to remain the main catalyst for movement in Sterling today, with GBP exchange rates likely to continue to strengthen if news remains positive.

GBP/EUR Exchange Rate Climbs as Eurozone Retail Sales Stall

The Pound Euro (GBP/EUR) exchange rate punched higher on Wednesday as Eurozone retail sales were shown to have stalled in September.

While an upwards revision to August’s figures helped to offset this somewhat, it was not enough to save what has proven to be a weak third quarter for sales growth.

Meanwhile movement in the Euro today is likely to be dependent upon the tone struck by the European Central Bank (ECB) in its latest economic bulletin, with a more cautious outlook from the bank likely to drag on EUR exchange rates

GBP/USD Exchange Rate Gains Following US Midterm elections

The Pound US Dollar (GBP/USD) exchange rate rose to its best levels since mid-October on Wednesday as a split in US Congress following the midterm elections saw investors shy away from the ‘Greenback’.

However while the US Dollar gave up some ground this was by no means a rout, with expectations of political deadlock in the US actually being welcomed by some investors who hope it will result in the status quo remaining in place for the foreseeable future.

The US Dollar may even seek to mount a recovery later today, with the Federal Reserve expected to continue to strike an optimistic tone following its latest policy meeting.

GBP/CAD Exchange Rate Muted as Ivey PMI Rebounds

The Pound Canadian Dollar (GBP/CAD) exchange rate traded in a narrow range yesterday, with the ‘Loonie’ pushing back against Sterling’s tentative gains as Canada’s Ivey PMI revealed a stronger-than-expected rebound in domestic economic activity in October.

GBP/AUD Exchange Rate Slumps Following Chinese Trade Figures

The Pound Australian Dollar (GBP/AUD) exchange rate tumbled around half a cent overnight on Wednesday, extending the losses seen earlier in the session as the ‘Aussie’ was bolstered by some strong trade figures from China.

The Australian Dollar may continue to press home its advantage later tonight, with AUD exchange rates likely to strengthen if the Reserve Bank of Australia (RBA) strikes a hawkish tone in its latest Statement on Monetary Policy.

GBP/NZD Exchange Rate Slides despite Neutral Outlook from RBNZ

The Pound New Zealand Dollar (GBP/NZD) exchange rate slumped to a two-month low overnight on Wednesday, with the ‘Kiwi’ bolstered by an upswing in risk appetite, despite a dovish statement from the Reserve Bank of New Zealand (RBNZ) following its November policy meeting.


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