Pound Sterling (GBP) Exchange Rates Crippled by Brexit Legal Advice Row
The Pound (GBP) was back on the defensive at the start of this week’s session as a row over the publication of the government’s Brexit legal advice relating to the possibility of the UK being stuck in an EU customs union indefinitely engulfed UK politics.
While an overview of the legal advice was eventually published it failed to placate Theresa May’s critics and highlighted the uphill battle the PM will face next week in pushing the deal through Parliament.
Turning to today’s session, an expected slowdown in the UK construction sector last month may hamper the Pound today, while a parliamentary appearance by Bank of England Governor Mark Carney will also be in focus for GBP investors.
GBP/EUR Exchange Rate Slides as Euro Takes Advantage of a Weakened US Dollar
The Pound Euro (GBP/EUR) exchange rate fell roughly half a cent yesterday as the single currency led the charge against the US Dollar (USD) on Monday.
The Euro’s role as the most traded currency partner with the US Dollar saw EUR well positioned to take advantage of the ‘Greenback’s weakness at the start of the week following the US-China trade truce.
Looking ahead the Euro may remain buoyed this morning if producer prices in the Eurozone are shown to have remained robust in October.
GBP/USD Exchange Rate Subdued Despite US-China Trade Truce
The Pound US Dollar (GBP/USD) exchange rate also softened on Monday, despite broad weakness in the ‘Greenback’ early in the session as safe-haven demand slumped after Trump agreed to a trade truce with China following discussions with President Xi over the weekend.
However USD exchange rates began to claw higher again in the afternoon following the release of a stronger-than-expected US manufacturing PMI.
A lull in notable US data is likely to hinder the US Dollar again today however, with USD exchange rates likely to remain subdued as if trade tensions continue to ease.
GBP/CAD Exchange Rate Slumps Following Sharp Upswing in Oil Prices
The Pound Canadian Dollar (GBP/CAD) exchange rate sank at the start of this week’s session, sliding roughly two cents as the ‘Loonie’ was bolstered by both renewed market confidence as well as a sharp rally in oil prices, which saw WTI crude prices surge by around 5%.
GBP/AUD Exchange Rate Rallies as RBA Worries
The Pound Australian Dollar (GBP/AUD) exchange rate fell to its lowest levels since early January yesterday before beginning to edge higher again overnight. The ‘Aussie’ was undermined by the Reserve Bank of Australia’s (RBA) latest policy meeting in which policymakers raised concerns about slowing global growth.
GBP/NZD Exchange Rate Slumps as Trade Tensions Ease
The Pound New Zealand Dollar (GBP/NZD) exchange rate fell almost two cents at the start of the week as NZD accelerated amid surging risk appetite bolstered by easing trade tensions.
Meanwhile the ‘Kiwi’ may come under pressure this afternoon should dairy prices continue to retreat following the latest global dairy auction.