Pound Sterling (GBP) Exchange Rates
The Pound (GBP) closed last week’s session rangebound against the majority of its peers as markets stuck a wary stance against the currency ahead of this week’s parliamentary vote on Theresa May’s Brexit deal.
On top of this was the release of the UK’s latest house price index, which further weighed on Sterling as price growth unexpectedly contracted in November.
Looking ahead to this week’s session Tuesday’s Brexit vote will undoubtedly dominate GBP exchange rates, although the release of the UK’s latest GDP figures this morning could still prompt some movement, especially if growth continued to stall in October.
GBP/EUR Exchange Rate Slides as Kramp-Karrenbauer Elected CDU Leader
The Pound Euro (GBP/EUR) exchange rate slipped at the end of last week’s session as EUR investors reacted to the news that Annegret Kramp-Karrenbauer had been elected leader of Germany’s ruling CDU party.
Kramp-Karrenbauer is seen by many as ‘Merkel lite’ leading markets to hope that should she ever replace Angela Merkel as Chancellor she would carry on with similar policies to her predecessor.
The release of Germany’s latest trade figures earlier this morning is likely to shape movement in EUR exchange rates today, with the Euro potentially strengthening as exports bounced back stronger than expected in October.
GBP/USD Exchange Rate Dips despite Lacklustre US Payrolls
While the Pound US Dollar (GBP/USD) exchange rate edged lower on Friday, the ‘Greenback’ failed to replicate its success against the rest of its peers following a sharp slowdown in US payrolls last month.
Further limiting the appeal of the US Dollar in broader trade were the accompanying wage growth figures, with an unexpected slide placing additional pressure on US consumers.
This may leave the US Dollar struggling at the start of this week’s session, especially if it is seen as increasing the chances of a rate hike pause from the Federal Reserve next year.
GBP/CAD Exchange Rate Tumbles as Canadian Employment Impresses
The Pound Canadian Dollar (GBP/CAD) exchange rate plummeted a cent at the end of last week’s session as CAD investors cheered higher employment figures, which rose by 94,100 in November.
Not only did this easily outpace expectations of an 11,000 increase and strike a record high, but it also propelled domestic unemployment to 5.6%, also the lowest on record.
GBP/AUD Exchange Rate Stabilises as Markets Rebound
The recent rally in the Pound Australian Dollar (GBP/AUD) exchange rate appeared to run out of momentum on Friday, with the pairing closing the session relatively flat after a rally across stock and commodity markets helped to prevent further losses in the risk-sensitive ‘Aussie’.
However the downtrend in AUD may continue later tonight as Australia’s House Price Index is expected to have contracted again in the third quarter.
GBP/NZD Exchange Rate Flat as Risk Aversion Eases
The Pound New Zealand Dollar (GBP/NZD) exchange rate also struggled to climb any higher on Friday, as the ‘Kiwi’ stabilised following a rebound in equities.