Pound Sterling (GBP) Exchange Rates Mixed as No-Deal Plans Ramped Up
The Pound (GBP) initially strengthened on Tuesday as the UK currency took advantage of the weakness of some of its peers.
However Sterling began to walk back some of these gains later in the day as news that the UK government would step up its Brexit preparations spooked some investors.
Looking ahead, the release of the UK’s latest Consumer Price Index (CPI) could prompt the Pound to relinquish some of these gains this morning as economists forecast inflation will have slowed in November.
GBP/EUR Exchange Rate Strengthens as German Business Confidence Drops to Two-Year Low
The Pound Euro (GBP/EUR) exchange rate edged higher yesterday, as markets reacted to Germany’s latest business climate index.
This revealed business confidence in Germany struck a two-year low in December, further indicating that the Eurozone’s largest economy is slowing.
An expected drop in Eurozone construction output in October may result in further losses in the Euro this morning if the data prints in line with expectations.
GBP/USD Exchange Rate Accelerates Ahead of Fed Rate Decision
The Pound US Dollar (GBP/USD) exchange rate trended higher on Tuesday in the run up to the Federal Reserve rate decision taking place later this evening, amid speculation of a dovish hike from the bank.
Applying further pressure to USD was a tweet from President Trump as he again expressed his displeasure at the bank’s decision to continue raising interest rates.
I hope the people over at the Fed will read today’s Wall Street Journal Editorial before they make yet another mistake. Also, don’t let the market become any more illiquid than it already is. Stop with the 50 B’s. Feel the market, don’t just go by meaningless numbers. Good luck!
— Donald J. Trump (@realDonaldTrump) December 18, 2018
Ultimately analysts still expect the Fed to go ahead with a hike this month, but suggest the US Dollar is likely to weaken following the decision on the back of some dovish forward guidance.
GBP/CAD Exchange Rate Climbs as Oil Drops to 15-Month Low
The Pound Canadian Dollar (GBP/CAD) exchange rate climbed almost a cent during yesterday’s session, with the oil-sensitive ‘Loonie’ beating a hasty retreat as crude prices plummeted to a new 15-month low amid oversupply concerns.
This downtrend in CAD may persist throughout Wednesday as well, with Canada’s own CPI figures expected to report a sharp slide in domestic inflation.
GBP/AUD Exchange Rate Strengthens as Commodities Slide
The Pound Australian Dollar (GBP/AUD) exchange rate ticked higher on Tuesday, as the rout in oil prices also dragged on the wider commodity market, diminishing the appeal of the ‘Aussie’.
GBP/NZD Exchange Rate Slides as Dairy Rally Continues
The Pound New Zealand Dollar (GBP/NZD) exchange rate, fell roughly 0.5% yesterday, with the ‘Kiwi’s gains following a jump in NZ business confidence and by another rise in prices at the latest global dairy auction.
Meanwhile, New Zealand’s latest GDP figures are expected to show domestic growth slowed to 0.6% in the third quarter, potentially weakening the appeal of NZD.