Pound Sterling Exchange Rate Daily Update: GBP/EUR Slumps as UK Businesses ‘Not-Ready’ For No-Deal Brexit

Pound Sterling (GBP) Exchange Rates Undermined by Carney Remarks

Hot on the heels of a damning Brexit assessment on Wednesday, Mark Carney prompted another drop in the Pound (GBP) yesterday as he again warned against a no-deal Brexit.

Stressing the need for the UK to secure a transition period with the EU, the Bank of England (BoE) Governor warned that large parts of the UK economy were still unprepared for a cliff edge exit from the EU, spooking many GBP investors who fear a no-deal Brexit looks increasingly likely.

The focus will now be on whether Theresa May is able to drum up enough support for her Brexit deal in the Commons, with Sterling likely to remain subdued unless it appears that she may get the numbers.

GBP/EUR Exchange Rate Slides as German Unemployment Falls to Record Low

The Pound Euro (GBP/EUR) exchange rate slumped roughly half a cent on Thursday as EUR investors cheered the release of Germany’s latest employment figures.

This showed that Germany’s jobless rate unexpectedly fell to 5% in November striking these lowest levels since reunification and dispelling some concerns about slowing economic activity in the Eurozone’s largest economy.

Meanwhile an expected slowdown in Eurozone inflation in November may dent demand for the Euro this morning if it renews fears of a slowdown in the bloc in the latter half of 2018.

GBP/USD Exchange Rate Dips despite Dovish Fed Outlook

The Pound US Dollar (GBP/USD) exchange rate trended lower yesterday as GBP investors were rattled by Carney’s latest comments on Brexit.

However in wider currency markets the US Dollar remained on the defensive as a number of investors began betting the Federal Reserve will only make a single rate hike in 2019 following some dovish remarks from Fed Chair Jerome Powell on Wednesday.

The focus for USD investors is likely to switch to the G20 summit of leaders today, where President Trump and his Chinese counterpart Xi Jinping will meet and hopefully deescalate trade tensions between the US and China.

GBP/CAD Exchange Rate Slips amid Oil Rally

The Pound Canadian Dollar (GBP/CAD) exchange rate suffered a fall of over half a cent yesterday, with the ‘Loonie’ able to recoup some of the ground lost on Wednesday as CAD investors welcomed a small rally in crude prices.

However the Canadian Dollar looks poised to relinquish these gains in today’s session, with domestic GDP figures expected to reveal Canada’s economy slowed in the third quarter.

GBP/AUD Exchange Rate Volatile Ahead of G20 Summit

Trade in the Pound Australian Dollar (GBP/AUD) exchange rate was mixed yesterday, with the pairing initially sliding before rallying later in the day as AUD investors became jittery ahead of the Xi-Trump dinner.

GBP/NZD Exchange Rate Fluctuates as Trade Speculation Rattles Markets

The Pound New Zealand Dollar (GBP/NZD) exchange rate also traded in a wide range on Thursday as the ‘Kiwi’ relinquished some of its initial gains on speculation over whether the US-China trade dispute may be resolved at the G20 meeting.

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