Pound Sterling (GBP) Exchange Rates Rally on Cabinet Optimism
The Pound (GBP) mounted a tentative recovery at the end of last week’s session as it clawed back some of Thursday’s losses.
Sterling’s rally appeared to be a mix of relief as Theresa May avoided any more Cabinet resignations and profit taking after GBP exchange rates fell more than 1.5%.
However with the threat of a vote of no-confidence hanging over May and Brexit expected to remain the main catalyst of movement this week, it’s highly the Pound will experience further volatility.
GBP/EUR Exchange Rate Dips on Draghi Confidence
The Pound Euro (GBP/EUR) exchange rate extended its losses on Friday, with the single currency able to continue to punish Sterling thanks to an upbeat speech from Mario Draghi.
Speaking in Frankfurt, the European Central Bank (ECB) Governor struck a confident tone as he mused that the recent ‘weak’ Eurozone would only be temporary, while also indicating the bank remains on track to close out its stimulus programme by the end of 2018.
EUR investors will be on the lookout for the European Commission’s response to Italy’s refusal to abide by EU budget rules this week. The Euro could weaken if the EC takes action against Rome.
GBP/USD Exchange Rate Accelerates on Dovish Fed Remarks
The Pound US Dollar (GBP/USD) exchange rate clawed higher at the end of last week’s session, with investors shunning the ‘Greenback’ following dovish comments from Federal Reserve Vice Chair Richard Clarida, in which he suggested interest rates are now in the ‘vicinity’ of neutral.
Applying further pressure to USD was the release of the latest US industrial production figures as output was shown to have slowed faster than expected in October.
Looking ahead, the US Dollar could face further losses in the first half of this week’s session if US durable goods orders contract in line with expectations on Wednesday.
GBP/CAD Exchange Rate Gains Capped by Oil Rally
The Pound Canadian Dollar (GBP/CAD) exchange rate accelerated roughly 0.5% on Friday before finding its gains clipped by a surge in crude prices that helped to support the oil-sensitive ‘Loonie’.
GBP/AUD Exchange Rate to Rebound as Trade Tensions Flare?
The Pound Australian Dollar (GBP/AUD) exchange rate continued to retreat on Friday, with the ‘Aussie’ finding support as markets went risk-on following the drop in the US Dollar (USD).
However the pairing looks poised to recover at the start of this week as trade tensions begin to dampen AUD demand once again following a breakdown in trade talks between the US and China over the weekend.
GBP/NZD Exchange Rate Fluctuates as USD Weakens
The Pound New Zealand Dollar (GBP/NZD) exchange rate met with volatility on Friday, with the pairing’s early gains being wiped out by the afternoon as risk appetite was bolstered by a drop in USD.
Sterling is on a stronger footing this morning however, with GBP/NZD rising 0.7%.