Pound Sterling (GBP) Exchange Rates Rebound on Brexit Hopes
The Pound (GBP) briefly clawed its way higher on Tuesday, seeking to recoup some of Monday’s losses on hopes that Theresa May could win some concessions on her Brexit deal as she met with a number of EU leaders.
However Sterling fell back again later in the session despite the release of the UK’s latest employment figures, which saw markets cheer a jump in earnings, as wage growth struck a 10-year high.
The Pound looks likely to struggle today, following the announcement that Theresa May will face a vote of no-confidence later this afternoon.
GBP/EUR Exchange Rate Rises on Italy Budget Concerns
The Pound Euro (GBP/EUR) exchange rate ticked higher yesterday as Italy’s deputy PM Luigi Di Maio reignited the row over Italy’s budget.
This came as Di Maio accused France of also breaking EU fiscal regulations amid reports of a 3.5% budget deficit proposal from Paris to cover Emmanuel Macron’s promises to raise wages and cut taxes in an effort to resolve some of the issues being championed by the recent Gilets Jaunes protests
Looking ahead, the Euro may show more resilience this morning, with economists forecasting industrial production in the Eurozone will have rebounded in October.
GBP/USD Exchange Rate Steady as Trade Tensions Ease
The Pound US Dollar (GBP/USD) exchange rate mounted a short-lived recovery yesterday as the ‘Greenback’ softened following a slide in safe-haven demand.
This came in the wake of a report that Beijing was preparing to cut tariffs on US car imports, hinting that progress is still being made to resolve the trade dispute despite the recent arrest of a Huawei executive, something which was seized upon by President Trump.
Very productive conversations going on with China! Watch for some important announcements!
— Donald J. Trump (@realDonaldTrump) December 11, 2018
Meanwhile the release of the latest US CPI figures may keep the pressure on the US Dollar today, with an expected drop in inflation last month likely to further strengthen the case for the Federal Reserve to pause its monetary tightening next year.
GBP/CAD Exchange Rate Steady as Oil Prices Jump
While the Pound Canadian Dollar (GBP/CAD) exchange rate held in a narrow range on Tuesday as the ‘Loonie’ was bolstered by a rise in oil prices, with US crude rallying over 2% as an interruption in Libyan exports prompted supply concerns.
GBP/AUD Exchange Rate Slumps as Trade Optimism Rises
The Pound Australian Dollar (GBP/AUD) exchange rate tumbled by over a cent on Tuesday, with the ‘Aussie’ surging on the back of rising risk appetite following the news that China was taking steps to cut tariffs on US cars.
GBP/NZD Exchange Rate Tumbles as Markets go Risk-On
The Pound New Zealand Dollar (GBP/NZD) exchange rate struck a new 14-month low overnight on Tuesday, mirroring movement in GBP/AUD as the ‘Kiwi’ was bolstered by renewed trade optimism.