Pound Sterling (GBP) Exchange Rates Dented by Johnson Resignation
The Pound (GBP) slumped at the end of last week’s session as the shock resignation of Jo Johnson from Theresa May’s government rocked the UK currency.
This added to the weakness seen in the wake of the UK’s latest GDP figure, with analysts warning a solid rise in third quarter growth likely masked some underlying weakness in the UK economy.
Looking to the weak ahead, the UK’s upcoming labour report could allow the Pound to regain some of its recent momentum if August’s jump in wage growth carries through to September as expected.
GBP/EUR Exchange Rate Flat as Italy Holds Fast on Budget despite EU Ultimatum
The Pound Euro (GBP/EUR) exchange rate traded in a narrow range on Friday as investors remained wary of the single currency amidst the ongoing row over Italy’s draft budget.
Brussels has said it wants to see Rome present a toned down budget by Tuesday, but at a meeting at the end of last week Italy’s Finance Minister stated that Rome would not alter ‘fundamental’ aspects of its budget.
The dispute is likely to remain a major concern for markets as this week’s session gets underway, with the Euro likely to soften today if both sides continue to refuse to budge.
GBP/USD Exchange Rate Slides as Hawkish Fed Guidance Dominates
The Pound US Dollar (GBP/USD) exchange rate drifted lower at the end of last week, with investors flocking back to the ‘Greenback’ as the Federal Reserve released a hawkish guidance statement following its latest rate decision.
Thursday’s guidance helped to refocus investor attention on the US economy and expectations that interest rates will continue to rise at a steady pace over the next year.
The main event for USD investors this week looks set to be the latest US CPI figures, with the US Dollar potentially mounting a more notable recovery if inflation accelerated in line with expectations in October.
GBP/CAD Exchange Rate Buoyed as Oil Prices Slump below $70
The Pound Canadian Dollar (GBP/CAD) exchange rate edged higher on Friday as concerns about falling demand and the oversupply of oil propelled global Brent crude prices below $70 a barrel to an eight-month low, denting the appeal of the oil-sensitive ‘Loonie’.
GBP/AUD Exchange Rate Fluctuates as Risk Sentiment Weakens
Movement in the Pound Australian Dollar (GBP/AUD) exchange rate was mixed at the end of last week, with fluctuations in risk appetite resulting in some brief gains for GBP/AUD before Brexit uncertainty dented the pairing by the end of the session.
The ‘Aussie’ may look to extend these gains later tonight if domestic business confidence surged in line with expectations last month.
GBP/NZD Exchange Rate Volatile as Risk Appetite Eases
The Pound New Zealand Dollar (GBP/NZD) exchange rate fluctuated largely in line with GBP/AUD on Friday, with the pairing’s attempts to rise being undermined by UK political uncertainty.