Pound Sterling (GBP) Exchange Rates Bolstered by May Victory
The Pound (GBP) rallied on Wednesday, rising against the majority of its peers ahead of a no-confidence vote in Theresa May on the expectation that she would survive.
While this proved true, Sterling actually trimmed some of its gains shortly after the vote, as with over a third of her colleagues voting against her it was still a blow to her premiership.
May will now meet with EU leaders later today in an attempt to gain legally binding pledges from the EU regarding the temporary nature of the backstop deal.
GBP/EUR Exchange Rate Accelerates ahead of ECB Rate Decision
The Pound Euro (GBP/EUR) exchange rate rallied roughly 0.8% yesterday as EUR investors held their position ahead of the European Central Bank’s (ECB) rate decision later today.
The ECB is widely expected to formally end its stimulus programme this month, with today’s policy meeting likely to detail how this will be achieved and the potential impact on the Eurozone.
However it will be the bank’s forward guidance for 2019 that will likely be in focus today, with the Euro poised to drop if the recent slowdown in the Eurozone leads to a more dovish outlook or a potential rate hike after the summer.
GBP/USD Exchange Rate Jumps as US Inflation Strikes Nine-Month Low
The Pound US Dollar (GBP/USD) exchange rate climbed around a cent on Wednesday, with the ‘Greenback’ unable to put up much of a fight against Sterling following the release of the latest US CPI figures.
A slowdown in inflation last month weighed heavily on USD yesterday as it further dampened expectations of that the Federal Reserve may continue to tighten monetary policy in 2019.
The absence of any notable US data is likely to lead to Fed rate speculation continuing to drag on sentiment today, possibly leaving the US Dollar vulnerable to further losses
GBP/CAD Exchange Rate Surges as UK Politics Offset Rising Oil Prices
The Pound Canadian Dollar (GBP/CAD) exchange rate rebounded from a one-month low yesterday as UK political developments trumped another rally in oil prices which saw the ‘Loonie’ accelerate against many of its other peers.
GBP/AUD Exchange Rate Gains Capped by Trade Optimism
The Pound Australian Dollar (GBP/AUD) exchange rate surged almost two cents during Wednesday’s trading session before relinquishing some of these gains overnight as the ‘Aussie’ was bolstered by signs of easing trade tensions between the US and China.
GBP/NZD Exchange Rate Rockets despite Improved Risk Appetite
The Pound New Zealand Dollar (GBP/NZD) exchange rate leapt around three cents yesterday as NZD seemingly found little traction despite improving risk-sentiment following some positive trade dialogue between Washington and Beijing.
This downtrend in the ‘Kiwi’ may persist overnight on Thursday as New Zealand’s latest PMI figures are expected to reveal manufacturing activity slowed again in November.