Pound Sterling (GBP) Exchange Rates Buoyed as May Goes to Brussels
The Pound (GBP) initially trended higher against many of its peers on Thursday on hopes Theresa May’s trip to Brussels would help to ease to fears over the Irish backstop.
However these gains were lost later in the session as May herself suggested she was not expecting a breakthrough at this point.
Looking ahead, a lull in UK data will likely lead Brexit sentiment to continue to dictate movement in GBP exchange rate, potentially weakening Sterling after the EU reiterated that the withdrawal agreement was ‘not open for renegotiation’.
GBP/EUR Exchange Rate Surges on Dovish ECB Outlook
The Pound Euro (GBP/EUR) exchange rate shot higher yesterday, appreciating by roughly half a cent following a dovish policy meeting by the European Central Bank (ECB).
This saw ECB President Mario Draghi warn about future downsides to the Eurozone and the bank slash its growth forecasts, despite the ECB actually ending its stimulus programme this month.
This downtrend in the Euro may continue this morning as well, especially if the Eurozone’s latest PMI figures highlight the bloc’s recent slowdown.
GBP/USD Exchange Rate Steady as Trade Tensions Ease
The Pound US Dollar (GBP/USD) exchange rate briefly edged higher on Thursday as the easing trade tensions between the US and China clipped demand for the safe-haven US currency.
This was partly attributed to a report from Bloomberg that China may be willing to open up its tech sector to participation by foreign companies.
Meanwhile the release of the latest US retail data may drag on the US Dollar later this afternoon as markets forecast sales growth will have slowed last month.
GBP/CAD Exchange Rate Rangebound as Canadian House Prices Stall
The Pound Canadian Dollar (GBP/CAD) exchange rate traded in a narrow range yesterday, following the release of Canada’s latest house price index after house prices were shown to have remained flat in October.
GBP/AUD Exchange Rate Advances as Chinese Data Disappoints
The Pound Australian Dollar (GBP/AUD) exchange rate accelerated by around half a cent overnight on Thursday, with Australia’s close trading relationship with China leading the ‘Aussie’ to tumble following the release of some lacklustre Chinese data.
GBP/NZD Exchange Rate Appreciates as Risk Appetite Eases
The Pound New Zealand Dollar (GBP/NZD) exchange rate also climbed higher overnight on Thursday, with easing demand for riskier assets and the weak Chinese economic data both weighing on the ‘Kiwi’.