Pound Sterling (GBP) Exchange Rates Soften as UK inflation Strikes 20-Month Low
The Pound (GBP) drifted lower against many of its peers yesterday following the publication of the UK’s latest Consumer Price Index (CPI).
This revealed inflation slowed from 2.4% to a 20-month low of 2.3% in November, due to a sharp drop in oil prices in recent weeks.
It remains to be seen if this will have any bearing on the Bank of England’s (BoE) rate decision today however, with Sterling potentially strengthening if the BoE appears open to accelerating the pace of rate hikes in 2019 given the recent uptrend in UK wage growth.
GBP/EUR Exchange Rate Retreats as Italy Settles Budget Row
The Pound Euro (GBP/EUR) exchange rate slumped around half a cent on Wednesday as EUR investors cheered the news that Italy had officially resolved its budget dispute with the EU.
The deal will avoid Rome facing an ‘excessive deficit procedure’ something which could have led to fines and other punitive measures from the European Commission.
However, the Euro may struggle to carry this momentum through to the end of the week as a lull in European data provides limited scope for movement.
GBP/USD Exchange Rate Rocked by Fed Rate Hike
The Pound US Dollar (GBP/USD) exchange rate was hit by volatility yesterday as the Federal Reserve delivered its final rate decision of 2018.
This saw the Fed raise interest rates as expected, but strike a less dovish tone towards future hikes than expected by markets leading the US Dollar to strengthen.
However the ‘Greenback’ may be forced to cede some ground today, if the latest Philadelphia Fed Manufacturing Index indicates the sector is slowing.
GBP/CAD Exchange Rate Steady as Canadian Inflation Disappoints
The Pound Canadian Dollar (GBP/CAD) exchange rate held in a narrow range on Wednesday, following the release of Canada’s own CPI figures.
The data revealed inflation slowed faster than expected last month, slumping from 2.4% to a 10 month low of 1.7% and appearing to weaken the case for a rate hike from the Bank of Canada (BoC) in the near future.
GBP/AUD Exchange Rate Jumps as Australian Unemployment Rises
The Pound Australian Dollar (GBP/AUD) exchange rate shot higher yesterday evening, with the Fed’s rate hike and an unexpected rise in Australian unemployment in November dragging on the ‘Aussie’.
GBP/NZD Exchange Rate Skyrockets as NZ GDP Undershoots Expectations
The Pound New Zealand Dollar (GBP/NZD) exchange rate surged around four cents overnight on Wednesday as the ‘Kiwi’ was hit by heavy losses after New Zealand’s economy cooled faster than expected in the third quarter.