Pound Sterling (GBP) Exchange Rates Dented by Brexit Uncertainty
The Pound (GBP) came under some pressure yesterday as the UK currency plummeted on reports of growing opposition to Theresa May’s Brexit plans led to renewed Brexit anxiety.
However Sterling began to recoup some ground later in the afternoon as the Financial Times reported that continued progress on the EU side could see the chief Brexit negotiator Michel Barnier present the EU’s exit treaty text to the UK government on Tuesday.
The Pound may look to extend its recovery during today’s session following the release of the UK’s latest labour report as economists forecast wage growth will remain solid in September.
GBP/EUR Exchange Rate Stable as Italy Budget Deadline Looms
The Pound Euro (GBP/EUR) exchange rate traded in a narrow range on Monday, with investors shying away from the single currency as Italy’s ongoing budget dispute with the EU took centre stage.
With Rome unwilling to submit a revised budget in line with EU fiscal rules, Brussels looks set take unprecedented action against Italy by imposing punitive measures following today’s deadline, much to the concern of EUR investors.
While the focus will undoubtedly be on Italy today, the Euro could also come under pressure with the publication of the latest ZEW economic sentiment survey, with the outlook from economists likely to be increasingly bleak in face of the Eurozone’s economic slowdown and political risks facing the bloc.
GBP/USD Exchange Rate Tumbles as Political Turbulence Drives Safe-Haven Demand
The Pound US Dollar (GBP/USD) exchange rate plummeted as much as 1% at the start of this week’s session as the political uncertainty affecting Sterling and the Euro fuelled demand for safe-haven currencies.
Otherwise it was a fairly quiet session for the ‘Greenback’ yesterday as US markets were closed for Veterans Day.
While US economic releases remain thin on the ground today, in light of the elevated political risks to other currencies, it’s likely the US Dollar will continue to see sturdy demand.
GBP/CAD Exchange Rate Slumps as Oil Prices Rebound
The Pound Canadian Dollar (GBP/CAD) exchange rate slumped around half a cent on Monday, with the oil sensitive ‘Loonie’ jumping higher against a weakened Sterling as Brent crude rallied back above $70 a barrel as Saudi Arabia pledged to limit exports.
GBP/AUD Exchange Rate Softens Amid Trade Optimism
After gaining ground yesterday evening, the Pound Australian Dollar (GBP/AUD) exchange rate fell back again overnight on Monday, with the ‘Aussie’ rocketing higher on reports that Chinese vice-premier Liu He is to travel to the US this month, sparking hopes of a potential trade deal.
However the Australian Dollar may be forced to give up ground later tonight, with Australia’s wage price index expected to show that domestic wage growth remained muted throughout the third quarter.
GBP/NZD Exchange Rate Slumps as Trade Concerns Ease
The Pound New Zealand Dollar (GBP/NZD) exchange rate echoed movement in GBP/AUD overnight on Monday, with the ‘Kiwi’ strengthening on hopes that high level trade talks between the US and China will help to ease global trade tensions.