Pound Sterling (GBP) Exchange Rates Flat as Brexit Remains in Focus
Trade in the Pound (GBP) was subdued on Wednesday, with lingering Brexit uncertainty applying pressure as Theresa May headed to Brussels in an attempt to finalise a deal amid opposition from Spain over Gibraltar.
Further denting potential upside to Sterling was the release of the UK’s latest public borrowing figures as they revealed the government was forced to borrow more than expected last month to balance the books.
A dearth of UK data if the second half of the week, means Brexit is likely to continue to influence GBP exchange rates today, with the Pound likely weakening further if any potential hurdles threaten to derail Sunday’s EU summit.
GBP/EUR Exchange Rate Dips on Hopes of Italy Budget Reconciliation
The Pound Euro (GBP/EUR) exchange rate edged lower yesterday as – despite the European Commission’s formal rejection of Italy’s 2019 budget – EUR investors remained optimistic of a possible compromise being struck in the future.
The upswing in the single currency appeared to be driven by speculation that – in the face of disciplinary measures and potential fines from the EC – Rome will ultimately back down on its budget.
However any relief in the Euro may prove to be short lived, with the latest Eurozone confidence figures forecast to show a drop in consumer sentiment this month.
GBP/USD Exchange Rate Steady as US Durable Goods Orders Contract
Trade in the Pound US Dollar (GBP/USD) exchange rate remain favourable on Wednesday as the ‘Greenback’ was buffeted by some weaker-than-expected US economic data.
US durable orders were shown to have contracted 4.4% last month, while September’s reading was revised down from to -0.1%, with analysts warning that US businesses are growing increasingly reluctant to invest in new equipment as trade tensions between the US and China continue to flare.
Looking ahead, the US Dollar could face some pressure today as the closure of US markets for Thanksgiving will likely result in thin-trading volumes for the currency.
GBP/CAD Exchange Rate Flat as Soft Canadian Data Offsets Oil Price Rally
The Pound Canadian Dollar (GBP/CAD) exchange rate remained flat during yesterday’s session as the ‘Loonie’ attempts to rally on the back of a rebound in oil prices was hindered by a surprise decline in Canadian Wholesale trades in September.
GBP/AUD Exchange Rate Drops as Stock Markets Rally
The Pound Australian Dollar (GBP/AUD) exchange rate tumbled half a cent on Wednesday, with the ‘Aussie’ recouping the majority of Tuesday’s losses as a rebound in stocks and commodity prices helped to reignite risk appetite.
GBP/NZD Exchange Rate Slides as Risk Sentiment Rebounds
The Pound New Zealand Dollar (GBP/NZD) exchange rate told a similar story to GBP/AUD yesterday, with the ‘Kiwi’ surging as investors’ risk appetite was improved by a rebound in equities as well as speculation of a more dovish pace of rate hikes from the Federal Reserve in 2019.