Pound Steady despite Construction Slowdown, GBP/EUR Exchange Rate Could Climb Today

Construction Activity Slows but Pound Sterling (GBP) Exchange Rates Stable

While the UK’s latest construction PMI showed that activity in the sector slowed again last month, the release failed to prevent the Pound (GBP) from stabilising on Thursday, with Sterling clawing back some of its recent losses amid speculation it may be oversold and due to rebound in the coming weeks.

These gains may be relinquished later this evening however, with the UK’s all-important Service PMI expected to report the sector stalled again in December

GBP/EUR Exchange Rate Steady amid USD Sell-Off

The Pound Euro (GBP/EUR) exchange rate remained largely flat on Thursday, although the single currency was able to record some gains elsewhere as profit taking in the US Dollar left an opening for the Euro.

The release of the Eurozone’s CPI figures may drag on the Euro later today, with expectations of a rate hike from the European Central Bank (ECB) potentially being dampened if inflation slides in line with expectations.

GBP/USD Exchange Rate Gains Dented by Sharp Drop in Manufacturing Growth

After falling sharply in the wake of the flash crash, the Pound US Dollar (GBP/USD) exchange rate rallied through the European session yesterday as USD was undermined by a bout of profit taking.

These losses were then further extended by the release of the latest ISM manufacturing index, which revealed US factory growth slowed sharply at the end of 2018.

This downtrend in the US Dollar may also persist through to the end of the week, with economists only expecting a slight pick-up in US payrolls.

GBP/CAD Exchange Rate Softens as Oil Prices Rise

The Pound Canadian Dollar (GBP/CAD) exchange rate was muted on Thursday as data revealed oil exports from major OPEC producer Saudi Arabia were slowing, bolstering crude prices and lifting the oil-sensitive ‘Loonie’.

However the Canadian Dollar may be forced to retreat later this afternoon, with Canada’s jobs report expected to report a sharp slowdown in employment growth last month.

GBP/AUD Exchange Rate Volatile Following Flash Crash

The Pound Australian Dollar (GBP/AUD) exchange rate traded in a wide range on Thursday as the ‘Aussie’ proved highly sensitive to the flash crash that rocked currency markets during the Asian session, with AUD even briefly striking a decade low against the US Dollar before mounting a recovery through the European session.

GBP/NZD Exchange Rate Fluctuates as Risk Appetite Slumps

The Pound New Zealand Dollar (GBP/NZD) exchange rate was also met by volatility yesterday, with the ‘Kiwi’ getting caught up in the crash that saw investors shun riskier assets.

 

09:00 EUR Services PMI (Dec)

09:30 GBP Services PMI (Dec)

10:00 EUR Inflation Rate (Dec)

13:30 CAD Unemployment Rate (Dec)

13:30 USD Non-Farm Payrolls (Dec)

Adam Solomon

Adam joined the team at TorFX soon after graduating from University in 2005 with a degree in Journalism. Since then Adam has advanced to become both Head of Trading and Head of Treasury. His keen interest in the currency market and knowledge of what drives exchange rates makes him perfectly positioned to produce regular market updates focused on the movements of the major currencies.

Contact Adam Solomon


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