Pound Sterling (GBP) Exchange Rates Steady as May Open to Second MP Vote on Brexit
The Pound (GBP) managed to hold its ground at the end of last week’s session as markets appeared to welcome Theresa May’s comments regarding the possibility of a second Commons vote on her Brexit deal.
While May said she wished to focus on the vote taking place on the 11 December, the possibility of a second vote helped to reduce concerns that the upcoming vote could be the final say on whether the UK will leave Brexit with a deal.
The start of this week’s session may prove more upbeat for the Pound however, with today’s manufacturing PMI expected to show a rebound in factory growth last month after it slowed to a two-year low in October.
GBP/EUR Exchange Rate Losses Trimmed as Eurozone Inflation Slows
The Pound Euro (GBP/EUR) exchange rate fell back on Friday but found its losses trimmed as the Eurozone published its latest Consumer Price Index (CPI).
The CPI figures revealed inflation slowed faster than expected last month amid a sharp slump in oil prices, leaving the rate of inflation dangerously close to sliding out of the European Central Bank’s target range.
Meanwhile the Euro may struggle during Monday’s session as the Eurozone’s own manufacturing PMI is expected to confirm growth in the bloc’s factory sector continued to cool in November.
GBP/USD Exchange Rate Rises as Investors Relieved by G20 Meeting
The Pound US Dollar (GBP/USD) exchange rate fell back at the end of last week’s session as markets became jittery ahead of the G20 meeting between US President Donald Trump and Chinese President Xi Jinping.
Investors became increasingly pessimistic as the meeting neared on Friday, with safe haven demand accelerating as analysts suggested the dinner between the two leaders was unlikely to lead to a breakthrough in the US-China trade dispute.
However the two powers surprised observers by agreeing to a temporary trade truce, leaving the US Dollar looking a bit sorry for itself as this week’s session opened and safe haven demand slipped away.
Looking ahead, the publication of the latest ISM manufacturing PMI is likely to be the main catalyst for movement in USD today, with the US Dollar likely to strengthen if factory growth remains robust in November.
GBP/CAD Exchange Rate Steady as Canadian GDP Beat Expectations
The Pound Canadian Dollar (GBP/CAD) exchange rate remained rangebound on Friday, with the release of Canada’s latest GDP figures failing to lift the ‘Loonie’ despite stronger-than-expected growth in the third quarter, as this was offset by yet another rout in oil prices.
GBP/AUD Exchange Rate Dives amid Trade Optimism
After showing limited movement on Friday, the Pound Australian Dollar (GBP/AUD) exchange rate sank to its lowest levels since January as this week’s session opened, with Australia’s trade focused economy leading AUD investors to welcome the US-China trade truce.
GBP/NZD Exchange Rate Slides as Risk Appetite Rebounds
The Pound New Zealand Dollar (GBP/NZD) exchange rate largely mirrored GBP/AUD on Friday before also rallying as the week’s session opened, with the US-China trade discussions helping to bolster market risk sentiment.