Pound Sterling (GBP) Exchange Rates make Tentative Gains Ahead of Brexit Vote
While the Pound (GBP) gained against most of its peers on Thursday, this was mostly down to weakness in its peers rather than any positive outlook for Sterling.
In fact these gains were likely as investors remain reluctant to trade in the UK currency in the run up to next week’s Parliamentary vote on Theresa May’s Brexit deal.
This is likely to result in a similar response for the Pound during Friday’s session as well, unless a major Brexit development emerges to shake up markets.
GBP/EUR Exchange Rate Steady as German Factory Growth Surprises
The Pound Euro (GBP/EUR) exchange rate held in a narrow range yesterday, with the single currency able to avoid similar losses to its other peers as markets welcomed the release of Germany’s latest industrial data.
The release saw EUR investors greet a surprise lift in German factory orders in October, with hopes that continued order growth could help to put the German economy back on track in the fourth quarter.
However the final release of the Eurozone’s third quarter GDP figures may leave the Euro muted today as they are expected to confirm growth slowed to a four-year low.
GBP/USD Exchange Rate Climbs as ADP Employment Slumps
The Pound US Dollar (GBP/USD) exchange rate made steady gains on Thursday, as the ‘Greenback’ was undermined by a sharper-than-expected fall in US ADP employment growth in November.
However this was following shortly afterwards by the release of the latest ISM non-manufacturing PMI, with a surprise rise in US service sector growth last month helping to cap the US Dollar’s losses.
The deluge of US data will continue through to the end of the week, with the US Dollar likely to dip if the sharp fall in the ADP employment figures is reflected in US payroll figures this afternoon.
GBP/CAD Exchange Rate Jumps as Canadian Trade Balance Disappoints
The Pound Canadian Dollar (GBP/CAD) exchange rate soared another cent yesterday as data revealed Canada’s trade deficit swelled in October, coinciding with another sharp drop in oil prices that sent the ‘Loonie’ spiralling lower.
This downtrend in CAD is likely to persist into Friday’s session as well, with this afternoon’s labour report forecast to reveal employment growth remained subdued in November.
GBP/AUD Exchange Rate Surges on Huawei Arrest
The Pound Australian Dollar (GBP/AUD) exchange rate continued to rocket higher on Thursday, with the pairing climbing another 1% as the arrest of an executive from Chinese telecoms giant Huawei rattled markets amid fears it could reignite US-China trade tensions.
GBP/NZD Exchange Rate Jumps as Risk Appetite Slumps
The Pound New Zealand Dollar (GBP/NZD) exchange rate followed a similar trajectory to GBP/AUD yesterday, with the ‘Kiwi’ forced to retreat as market risk appetite was buffeted by renewed geopolitical tensions.