Pound Sterling (GBP) Exchange Rates Volatile as Brexit Looms
While it may be a new year, movement in the Pound (GBP) continues to be dominated by the same old factors, namely Brexit and the uncertainty that surrounds it.
This prompted some volatility through the first half of this week as markets brace for a key parliamentary vote on Theresa May’s Brexit deal later this month.
The release of the UK’s latest PMI figures may also drag on Sterling later this morning, with the data expected to show that manufacturing growth softened at the end of 2018.
GBP/EUR Exchange Rate Fluctuates as the Euro Turns 20
The Pound Euro (GBP/EUR) exchange rate traded in a comparatively wide range at the start of this week’s session as the 20th anniversary of the single currency’s launch saw European Central Bank (ECB) president Mario Draghi speak of the future work needed to complete the monetary union.
Draghi called the Euro a success but tempered it by suggesting the anniversary was cause for ‘close and candid introspection that could inspire future action on how to complete the monetary union.’
Meanwhile, EUR exchange rates are flat this morning as the latest Eurozone PMI data confirmed that manufacturing activity in the bloc is now ‘near stagnation’ after booming 12 months ago.
GBP/USD Exchange Rate Robust as US Government Shutdown Weighs on Sentiment
The Pound US Dollar (GBP/USD) exchange rate strengthened through the first part of this week’s session as the US government shutdown weighed on USD sentiment.
However the US dollar is looking bullish again this morning, with some weak Chinese data resulting in greater demand for safe-haven currencies.
Looking ahead, the release of the latest ISM manufacturing PMI may dampen demand for the US dollar later this afternoon, with factory growth in the US likely to have slowed slightly in December.
GBP/CAD Exchange Rate Rallies as Oil Prices Drop
The Pound Canadian Dollar (GBP/CAD) exchange rate rallied late on Tuesday, with the ‘Loonie’ relinquishing some of its recent gains as oil prices fell sharply on the first day of trade in 2019.
GBP/AUD Exchange Rate Buoyant as Chinese Factory Activity Slows
The Pound Australian Dollar (GBP/AUD) exchange rate trended higher during the Asian session earlier this morning as Australia’s close trade relationship with China saw the ‘Aussie’ knocked by the latest Chinese manufacturing PMI, as factory growth contracted for the first time for 19-months.
GBP/NZD Exchange Rate Steady as Chinese Data Disappoints
The Pound New Zealand Dollar (GBP/NZD) exchange rate also edged higher overnight on Tuesday as the disappointing Chinese data dampened market demand for riskier currencies such as the ‘Kiwi’.