Pound Sterling Exchange Rate Daily Update: GBP Rattled by BoE No-Deal Brexit Warning

Pound Sterling (GBP) Exchange Rates Battered by BoE Warning

The Pound (GBP) strengthened throughout the first half of Wednesday’s trading session as investors appeared optimistic about the Bank of England’s (BoE) analysts of the UK’s Brexit deal.

However Sterling then beat a hasty retreat following the release of the report as BoE Governor Mark Carney warned a no-deal Brexit could sink the UK into a recession.

Looking ahead to today’s session, the Pound may struggle as the BoE’s latest mortgage figures are forecast to show loan approvals fell in October.

GBP/EUR Exchange Rate Spikes on Reports of Potential Car Tariffs

The Pound Euro (GBP/EUR) exchange rate briefly leapt around half a cent yesterday morning as markets became increasingly bearish towards the single currency following reports of possible US tariffs against imported cars.

According to German magazine, Wirtschaftswoche, US President Donal Trump may seek to impose tariffs on imported cars as soon as next week, in what would be a major blow to Europe’s automotive industry.

The Euro may also struggle on Thursday as Germany’s latest employment and inflation figures will be in the spotlight, with any further signs that economic activity in the Eurozone’s largest economy may be slowing in the fourth quarter likely to spook EUR investors.

GBP/USD Exchange Rate Rallies on Powell Comments

The Pound US Dollar (GBP/USD) exchange rate started to rise during the European session on Wednesday as global trade tensions eased, dampening demand for safe-haven currencies.

However the pairing’s gains accelerated sharply in the evening following a speech from Federal Reserve Chair Jerome Powell in which he hinted that the pace of US rate hikes may slow.

The Fed will remain in focus for USD investors today as well, with the publication of the minutes from November’s policy meeting potentially lifting the US Dollar if they support expectations of further rate hikes in 2019.

GBP/CAD Exchange Rate Climbs as Oil Prices Retreat

Movement in the Pound Canadian Dollar (GBP/CAD) exchange rate was once again dominated by oil prices on Wednesday, with the ‘Loonie’ being undermined by yet another slide in crude prices.

GBP/AUD Exchange Rate Drops as Risk Appetite Grows

The Pound Australian Dollar (GBP/AUD) exchange rate fell over a cent yesterday, with the ‘Aussie’ surging higher on the back of easing trade tensions and a weaker US Dollar.

GBP/NZD Exchange Rate Weakens amid Easing Trade War Fears

The Pound New Zealand Dollar (GBP/NZD) exchange rate mirrored the movement of GBP/AUD on Wednesday, with the ‘Kiwi’ also surging amidst hopes the US and China may be able to resolve their trade dispute at the upcoming G20 summit of leaders.

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