Pound Sterling (GBP) Exchange Rates Sink as May Delays Commons Brexit Vote
The Pound (GBP) dropped sharply during trade on Monday amid a new bout of Brexit uncertainty as Theresa May opted to delay today’s House of Commons vote on her government’s withdrawal deal after it was made clear it would face a heavy defeat.
The delay was seen as yet another blow to Brexit clarity, prompting GBP exchange rates to fall sharply throughout the session.
Theresa May will meet with EU leaders later today in an attempt to rescue her Brexit deal, with the release of the UK’s latest employment report also likely to impact Sterling.
GBP/EUR Exchange Rate Plummets, EUR Investors Welcome German Trade Figures
The Pound Euro (GBP/EUR) exchange rate slumped as much as a cent during yesterday’s session mostly on the back of Sterling’s Brexit angst.
However the single currency’s gains were also partly driven by the release of Germany’s latest trade figures as a sizable pickup in exports led to a bigger-than-expected trade surplus in October.
Meanwhile the publication of the Eurozone’s latest economic sentiment index could hamper the Euro this morning as economists are expected to be pessimistic in their outlook for the bloc this month.
GBP/USD Exchange Rate Slides despite Fed Pessimism
While the Pound US Dollar (GBP/USD) exchange rate fell to a 20-month low on Monday, the ‘Greenback’ actually softened in broader trade yesterday.
This came as a result of persistent concerns over Friday’s lacklustre payrolls figures, which analysts suspected would further weaken the case for the Federal Reserve to continue hiking interest rates in 2019.
The release of the latest US PPI figures could prompt this trend to persist throughout today’s session as well, with economists forecasting producer price growth will have stalled in November.
GBP/CAD Exchange Rate Losses Trimmed by BoC Doubts
While the Pound Canadian Dollar (GBP/CAD) exchange rate dropped by around a cent during yesterday’s session, the pairing’s losses appeared to be capped by broad losses in the ‘Loonie’ amid speculation the Bank of Canada (BoC) may tone down its hawkish bias in the bank’s forward guidance following its upcoming policy meeting.
GBP/AUD Exchange Rate Slumps as USD Softens
The Pound Australian Dollar (GBP/AUD) exchange rate sank roughly two cents on Monday, with Brexit uncertainty and broad weakness in the US Dollar (USD) allowing the ‘Aussie’ to surge higher.
Looking ahead, AUD exchange rates may come under pressure later this evening with the release of Australia’s consumer confidence figures as household confidence is forecast to have fallen back again this month.
GBP/NZD Exchange Rate Slides as Risk Aversion Eases
Movement in the Pound New Zealand Dollar (GBP/NZD) exchange rate largely mirrored that of GBP/AUD yesterday, with the ‘Kiwi’ gaining amid a tentative rise in risk-appetite.