Pound Exchange Rate Daily Update: GBP/USD Holding Steady after Trump Warns of UK-US Post-Brexit Trade Deal Problems

Pound Sterling (GBP) Exchange Rates Dented by Trump’s Brexit Deal Criticism

The Pound (GBP) stumbled against the majority of its currency peers yesterday as Donald Trump launched a broadside at Theresa May’s Brexit plan.

This saw the US President warn the current agreement between the UK and EU could put the kibosh on a potential UK-US trade deal in the future, leading Sterling sentiment to sink despite May’s insistence that the deal will not prevent the UK signing bilateral trade deals around the world after Brexit.

Looking ahead, the focus for GBP investors today is likely to be on the Bank of England’s (BoE) latest Financial Stability Report and the bank’s accompanying assessment comparing Theresa May’s Brexit deal to a no-deal scenario.

GBP/EUR Exchange Rate Muted as Rome Vows to Stick to Budget Plans

The Pound Euro (GBP/EUR) exchange rate’s losses were capped on Tuesday after Rome announced it would not back down over its controversial 2019 budget, despite hints earlier in the week it may be willing to compromise.

This puts Italy on a collision path with Brussels, spooking EUR investors who fear that disciplinary measures against Rome are now unavoidable.

Meanwhile the release of Germany’s latest consumer confidence index is placing further pressure on the Euro this morning as household sentiment was shown to have fallen back again in December.

GBP/USD Exchange Rate Tumbles as Safe-Haven Demand Jumps on Trump Remarks

The Pound US Dollar (GBP/USD) exchange rate fell around half a cent yesterday as the ‘Greenback’ benefitted from safe-haven demand on the back of additional comments by Trump.

Trump stoked fears of a potential US-China trade war yesterday as he threatened to hit the Asian nation with another $267bn worth of tariffs.

The US Dollar may continue to accelerate today, if the latest US GDP estimate indicates the economy grew faster than initially thought in the third quarter.

GBP/CAD Exchange Rate Losses Trimmed on Oil Losses

The Pound Canadian Dollar (GBP/CAD) exchange rate initially slumped on Tuesday morning before creeping higher later in the afternoon as crude prices settled close to a one-year low and dampening demand for the oil-sensitive ‘Loonie’

GBP/AUD Exchange Rate Dips despite Trade Uncertainty

The Pound Australian Dollar (GBP/AUD) exchange rate tumbled around a cent during yesterday’s session despite the ‘Aussie’ fluctuating in wider currency markets as it was rocked by renewed trade tensions between the US and China.

GBP/NZD Exchange Rate Slumps on Upbeat RBNZ Financial Review

After slumping nearly two cents during the European session, the Pound New Zealand Dollar (GBP/NZD) exchange rate held onto its losses overnight as the Reserve Bank of New Zealand (RBNZ) delivered an upbeat assessment of New Zealand’s economy in its latest Financial Stability Report.

Luke Trevail

Luke studied Journalism at university but quickly moved into the financial sector, initially working in retail banking before joining TorFX in 2007. As a Senior Account Manager Luke assists in overseeing the management of the company’s exposure to currency volatility. He uses his years of foreign exchange experience to produce regular news updates exploring the latest currency movements.

Contact Luke Trevail