Pound Sterling (GBP) Exchange Rates Volatile as Brexit Deal Faces Cabinet Scrutiny
The Pound (GBP) was hit by considerable volatility yesterday as markets braced for a crunch cabinet meeting in which Theresa May put forth a draft Brexit agreement for approval.
While Theresa May ultimately secured the cabinet’s backing for the deal, providing some support for Sterling, more volatility is expected as the PM faces her MPs today.
The UK will publish its latest retail sales figures this morning, but with Brexit currently dominating market sentiment the data is unlikely to have much of an impact on GBP exchange rates, even if sales growth rebounds as expected in October.
GBP/EUR Exchange Rate Losses Capped by Contraction in German GDP
While the Pound Euro (GBP/EUR) exchange rate fell back during Tuesday’s trading session, the pairing’s losses were trimmed somewhat by the release of Germany’s latest GDP reading.
The data revealed Germany suffered its first contraction in growth in over three-years in the third quarter, with deteriorating trade conditions resulting in GDP slumping from 0.5% to -0.2%.
In the sights of EUR investors today will be a speech by the European Central Bank’s (ECB) Benoît Cœuré, with a positive outlook from the policy maker potentially lending some support to the Euro.
GBP/USD Exchange Rate Mixed as US Core Inflation Slows
The Pound US Dollar (GBP/USD) exchange rate initially led the charge lower on Wednesday, with the pairing falling as much as 0.8% as markets braced for the Brexit cabinet meeting.
However a surprise dip in US core inflation in October took the wind out of the ‘Greenback’s’ sails later in the afternoon, resulting in the US Dollar relinquishing much of the ground gained during the European session.
Meanwhile the publication of the latest US retail sales figures later this afternoon may see the US Dollar rebound once more as analysts predict sales growth will have jumped from 0.1% to 0.5% in October.
GBP/CAD Exchange Rate Slides as Oil Prices Rebound
The Pound Canadian Dollar (GBP/CAD) exchange rate slumped around half a cent on Wednesday, with the oil-sensitive ‘Loonie’ clawing back some of Tuesday’s losses as the prospect of OPEC led production cuts saw crude prices rebound almost 3%.
GBP/AUD Exchange Rate Slumps Following Impressive Australian Jobs Report
The Pound Australian Dollar (GBP/AUD) exchange rate slumped over a cent overnight on Wednesday, with the ‘Aussie’ able to exploit the volatility in Sterling and surge on the back of a solid rise in employment growth in October.
GBP/NZD Exchange Rate Fluctuates as Brexit Plays Havoc with Currency Markets
Trade in the Pound New Zealand Dollar (GBP/NZD) exchange rate was erratic on Wednesday as Brexit uncertainty rocked currency markets.