Pound Sterling (GBP) Exchange Rates Stall as Spain Threatens to Veto Brexit Vote
The Pound (GBP) trod water at the very end of last week’s session as threats from Spain to ‘stop the clock’ in Brexit negotiations over concerns about the future of Gibraltar.
While no single member of the EU has the power to block the deal, Brussels’ desire to have unanimous approval saw investors start to become a little jittery.
Ultimately the deal was approved by EU leaders at the summit on Sunday, allowing the Pound to start this week’s session on solid footing.
GBP/EUR Exchange Rate Flat as Eurozone PMIs Disappoint
The Pound Euro (GBP/EUR) exchange rate remained rangebound on Friday as markets reacted to the Eurozone’s latest PMI figures.
This revealed that private sector growth in the bloc hit a four-year low this month, with EUR investors particularly concerned over the continued slowdown in Germany considering its economy actually contracted last quarter.
The Euro is likely to remain on the back foot at the start of this week if Germany’s business climate index is also slipped in November.
GBP/USD Exchange Rate Weakens as Safe-Haven Demand Climbs
Trade in the Pound US Dollar (GBP/USD) exchange rate fell roughly half a cent at the end of last week amid renewed demand for safe-haven currencies such as the ‘Greenback’.
This was partly driven by a continued decline in equities, but was also down to nervousness ahead of a meeting between Donald Trump and XI Jinjing at the G20 summit later this week over fears the US-China trade dispute would remain unresolved.
Looking to the week ahead USD traders are likely to focus on the latest US GDP estimate, with the US Dollar poised to strengthen if Q3 growth proves stronger than initially thought.
GBP/CAD Exchange Rate Steady as Plummeting Oil Prices Offset Rising Canadian Inflation
The Pound Canadian Dollar (GBP/CAD) exchange rate held in a narrow range at the end of last week, as stronger-than-expected Canadian inflation figures failed to offset a 5% rout in oil prices that saw Brent crude strike a one-year low and dampen demand for the oil-sensitive ‘Loonie’.
GBP/AUD Exchange Rate Muted as Iron Ore Prices Soften
The Pound Australian Dollar (GBP/AUD) exchange rate trod water on Friday as a slump in iron ore prices and lingering trade uncertainty pressured the commodity-linked ‘Aussie’.
GBP/NZD Exchange Rate Steady as Risk Sentiment Sinks
The Pound New Zealand Dollar (GBP/NZD) exchange rate held steady at the end of last week’s session, with the ‘Kiwi’ struggling as market risk appetite slid.
However NZD may rally overnight if New Zealand’s trade deficit is shown to have narrowed in October as forecast.