Pound Sterling (GBP) Exchange Rates Mixed as UK Government Rejects Possible Extension to Brexit Transition
The Pound (GBP) remained volatile at the start of this week’s session, as Brexit continued to dominate the UK currency.
Uncertainty over a possible extension to the Brexit implementation period proved to be the focus for investors yesterday, with the UK government’s rejection of a possible extension appearing to dampen GBP sentiment.
Sterling may be given some respite from recent Brexit headlines later this morning however as attention turns to the Bank of England’s (BoE) latest inflation hearing.
GBP/EUR Exchange Rate Flat as Markets Brace for EC Italy Action
The Pound Euro (GBP/EUR) exchange rate was left to trade in a narrow range yesterday as EUR investors remained wary ahead of the European Commission’s (EC) report on Italy later in the week.
Wednesday’s report is seen as the first step towards implementing punitive measures against Rome over its refusal to revise its budget.
Meanwhile the Euro is likely to remain subdued today, with France’s muted unemployment figures unlikely to divert attention away from Italy.
GBP/USD Exchange Rate Stabilises fluctuates Fed Rate Uncertainty
The Pound US Dollar (GBP/USD) exchange rate made some tentative gains on Monday as the ‘Greenback’ was undermined by speculation of a potential rate pause from the Federal Reserve in 2019.
This followed some dovish remarks from Fed Vice-Chair Richard Claridaon on Friday in which he suggested rates are close to a ‘neutral’ level.
In the absence of any notable US data today, the focus for USD investors is likely to be on the renewed trade tensions between the US and China, with the US Dollar strengthening if it leads to an upswing in safe-haven demand.
GBP/CAD Exchange Rate Climbs as Oil Prices Slide
The Pound Canadian Dollar (GBP/CAD) exchange rate ticked higher at the start of this week’s session as the oil-sensitive ‘Loonie’ was softened by a 1% drop in crude prices amid concerns Russia will not back the latest round of OPEC led production cuts.
GBP/AUD Exchange Rate Surges as US-China Trade Tensions Flare
The Pound Australian Dollar (GBP/AUD) exchange rate jumped on Monday, with the renewed trade tensions between the US and China following the APEC meeting over the weekend weighing heavily on the ‘Aussie’.
GBP/NZD Exchange Rate Jumps as Risk Appetite Slides
The Pound New Zealand Dollar (GBP/NZD) exchange rate surged as much as 1% yesterday, with the ‘Kiwi’ slumping as trade worries clipped market risk appetite.
This downtrend in NZD looks set to continue throughout today’s session as well, as New Zealand’s large dairy export sector leaves the currency vulnerable to another fall in prices at the latest global dairy auction.