Pound Sterling (GBP) Exchange Rates Pummelled by Brexit Deal Fallout
The Pound (GBP) had a rough time on Thursday as the resignation of Cabinet ministers Dominic Raab and Esther McVey rocked confidence in Sterling.
Following a grilling from MPs as she presented the deal to Parliament yesterday morning, it also emerged that a number of rebel MPs, led by prominent Brexiteer Jacob Rees-Mogg were moving to trigger a vote of no-confidence in Theresa May, further spooking GBP investors.
Expect to see further volatility in the Pound today as Brexit remains centre-stage and markets begin to speculation on the future of May’s leadership.
GBP/EUR Exchange Rate Nosedives as Italy takes a Back Seat
The Pound Euro (GBP/EUR) exchange rate slumped as much as 1.5% on Thursday as the focus on Brexit saw EUR investors largely ignore their concerns regarding Italy.
This is despite the deadline for Rome to revise its budget having come and gone, with markets now left to wait on what the response from the European Commission will be.
Meanwhile movement in the Euro is likely to be dictated by a speech from European Central Bank (ECB) President Mario Draghi this morning, with EUR exchange rates potentially retreating if the recent slowdown in Eurozone growth leads Draghi to strike a cautious tone.
GBP/USD Exchange Rate Pressured by Rebound in US Retail Sales
Placing additional pressure on the Pound US Dollar (GBP/USD) exchange rate yesterday was the publication of the latest US retail sales figures.
Headline sales growth was reported to have jumped 0.8% in October, rallying from a 0.1% contraction in September and beating forecasts of a 0.5% rise.
The release of the latest US industrial production figures may allow the US Dollar to extend these gains today, if production picks up in October as some analysts suggest.
GBP/CAD Exchange Rate Slumps as Oil Prices Stabilise
The Pound Canadian Dollar (GBP/CAD) exchange rate plummeted roughly three cents on Thursday, with the ‘Loonie’ able to fully exploit the weakness in Sterling as Brent crude prices stabilised above $66 a barrel, prompting hopes the recent fall will have only been a slight blip.
GBP/AUD Exchange Rate Sinks on Strong Australian Labour Figures
The Pound Australian Dollar (GBP/AUD) exchange rate slumped to a two-month low on Thursday, as strong Australian labour figures helped to turbo charge the ‘Aussie’s’ rally against Sterling.
GBP/NZD Exchange Rate Dives as NZ Business PMI Impresses
Trade in the Pound New Zealand Dollar (GBP/NZD) exchange rate fell over four cents yesterday as a stronger-than-expected rise in New Zealand’s Business PMI led to a more bullish outlook for the ‘Kiwi’.