Pound Sterling Exchange Rate Daily Update: GBP/CAD Soars as BoC Leaves Rates on Hold

Pound Sterling (GBP) Exchange Rates Volatile on Service Sector Slowdown

The Pound (GBP) struggled to stabilise against many of its peers on Wednesday, with the release of the UK’s latest Services PMI revealing the sector was close to stagnating last month as growth struck a 28-month low.

However helping to offset this was optimism amongst investors that the risks of a no-deal Brexit had diminished following the recent votes in Parliament.

Looking forward we can expect to see Brexit continue to influence GBP exchange rates throughout the second half of the week as the Pound remains trapped by political developments and speculation on Brexit.

GBP/EUR Exchange Rate Fluctuates on Mixed Retail Sales Data

The Pound Euro (GBP/EUR) exchange rate traded in a wide range yesterday, following the publication of some mixed retail data from the Eurozone.

This showed that while retail sales growth picked back up in October, September proved to be a more difficult trading environment than initially thought for the bloc’s retailers, with sales growth being revised down to -0.5%.

EUR sentiment is likely to remain subdued through today’s session as well if Germany’s construction PMI shows activity in the country’s construction sector continued to contract in November.

GBP/USD Exchange Rate Flat on Fears of a US Slowdown

The Pound US Dollar (GBP/USD) exchange rate trod water on Wednesday, as a lull in data left investors to mull over fears of a possible downturn in US growth.

This was prompted by declines in long-dated US bond yields as well as concerns the ongoing US-China trade dispute could negatively impact the US economy if it is drawn out much longer.

However, a slew of US economic data could see the US Dollar roar back to life today, with a solid US services PMI and robust rise in employment both likely to support USD exchange rates.

GBP/CAD Exchange Rate Soars as BoC Keeps Rates on Hold

The Pound Canadian Dollar (GBP/CAD) exchange rate shot up by around 1% yesterday as investors abandoned the ‘Loonie’ in droves following the Bank of Canada’s (BoC) latest rate decision.

While the BoC’s decision to keep interest rates on hold had been widely expected by economists, a cautious tone from the bank regarding future hikes dented CAD exchange rates amid speculation the bank may also leave rates unchanged in the New Year as well.

GBP/AUD Exchange Rate Jumps as Australian GDP Prompts RBA Rate Cut Speculation

The Pound Australian Dollar (GBP/AUD) exchange rate appreciated by over a cent during the European session on Wednesday as markets shunned the ‘Aussie’ after a sharp slowdown in domestic GDP in the third quarter left investors speculating on the possibility of a rate cut from the Reserve Bank of Australia next year.

GBP/NZD Exchange Rate Strengthens Following Huawei Arrest

The Pound New Zealand Dollar (GBP/NZD) exchange rate soared overnight on Wednesday as the arrest of Huawei’s chief financial officer in Canada prompted fears it could reignite trade tensions between the US and China only days after a truce was called.

 

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


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