Pound Sterling (GBP) Exchange Rates Jumps as Brexit Optimism Grows
The Pound (GBP) leapt higher against the majority of its peers during yesterday’s trading session as Brexit optimism was buoyed by reports the UK and EU had agreed the text for a draft withdrawal agreement.
This helped to build on gains made earlier in the session as the UK’s latest labour report revealed UK wage growth had continued to accelerate at the end of the third quarter.
The Pound is on the back foot at the moment but may attempt to mount a recovery later this morning with the publication of the UK’s latest Consumer Price Index (CPI) as economists forecast inflation will have strengthened again in October.
GBP/EUR Exchange Rate Strengthens as Italy Concerns Bite
The Pound Euro (GBP/EUR) exchange rate jumped around half a cent on Tuesday, as investors shied away from the single currency amidst concerns about Italy’s budget dispute with the EU.
With Tuesday’s deadline for Rome to submit a revised budget passing, the EU is now expected to move to impose punitive measures against Italy, likely prompting additional volatility in EUR exchange rates today.
Further denting the Euro today will be Germany’s latest GDP figures, which have revealed Europe’s largest economy shrank 0.2% in the third quarter.
GBP/USD Exchange Rate Climbs as Risk Appetite Grows
The Pound US Dollar (GBP/USD) exchange rate surged as much as 0.8% yesterday as a weakened ‘Greenback’ struggled to hold off Sterling’s advances.
This softening of USD appeared to be driven by a mix of profit taking and an easing of trade tensions which cut into demand for the safe-haven currency.
Meanwhile the US will release its own CPI figures this afternoon with the US Dollar likely to strengthen if an expected jump in inflation helps to bolster Federal Reserve rate hike odds.
GBP/CAD Exchange Rate Surges as Oil Prices Nosedive
The Pound Canadian Dollar (GBP/CAD) exchange rate soared over a cent on Tuesday as crude prices dropped a stunning 8% following Donald Trump’s warning against Saudi Arabia production cuts, saw demand for the oil-sensitive ‘Loonie’ crumble.
GBP/AUD Exchange Rate Steady as Australian Wage Growth Strengthens
The Pound Australian Dollar (GBP/AUD) exchange rate traded in a narrow range overnight on Tuesday, with the ‘Aussie’ able to minimise its losses against Sterling as domestic wage growth struck a three-year high in the third quarter.
There’s potential for AUD to rebound later tonight however, with a strong Australian jobs report likely to reflect well on the Australian Dollar.
GBP/NZD Exchange Rate Slumps as Trade Tensions Continue to Ease
The Pound New Zealand Dollar (GBP/NZD) exchange rate meanwhile fell back overnight, giving up almost all of Tuesday’s gains as rising global trade optimism lent support to the ‘Kiwi’.