Pound Sterling Exchange Rates Daily Update: GBP/USD Climbs on Dovish Powell Comments

Pound Sterling (GBP) Exchange Rates Stall on DUP Brexit Warning

The Pound (GBP) initially got off to a good start on Friday, accelerating against many of its peers as the UK’s services PMI came in slightly better than expected in December.

However Sterling then fell back in the afternoon after a leading figure in the Democratic Unionist Party (DUP) warned there was ‘no way’ that the party would support Theresa May’s Brexit deal.

This may add to the headwinds likely facing the Pound this week, with GBP exchange rates likely to experience significant volatility as it appears more likely May’s deal will be rejected by MPs later in the month.

GBP/EUR Exchange Rate Climbs as Eurozone Inflation Tumbles

The Pound Euro (GBP/EUR) exchange rate advanced around 0.3% at the end of last week’s session as markets were left disappointed by the latest Eurozone CPI figures.

Eurostat reported that inflation slumped from 1.9% to 1.6% in December, striking its lowest levels since April and weakening the case for the European Central Bank to raise interest rates in 2019.

This downtrend in the Euro may also persist into today’s session as well, with economists forecasting Eurozone retail sales growth will have slowed in November.

GBP/USD Exchange Rate Flat Following Bumper US Jobs Report

After a strong start to the session, the Pound US Dollar (GBP/USD) exchange rate briefly fell back in the early afternoon with the release of the latest US jobs report.

This saw US payrolls unexpectedly surge by 312,000 in December, with the rally in USD also being supported by a surprise upswing in average hourly earnings over the same period.

However the ‘Greenback’ quickly swung back as it was undermined by dovish remarks from Federal Reserve Chair Jerome Powell.

The US Dollar’s performance at the start of this week’s session however will largely be dependent on the latest ISM non-manufacturing PMI, with USD exchange rates set to slump if growth in the US service sectors shows a similar slowdown to the US factory sector last month.

GBP/CAD Exchange Rate Slides as Rising Oil Prices Offset Weak Canadian Jobs Data

The Pound Canadian Dollar (GBP/CAD) exchange rate trended lower at the end of last week, with the ‘Loonie’ finding support from the ongoing rally in oil prices despite some lacklustre domestic employment growth in December.

GBP/AUD Exchange Rate Slides as Market Risk Appetite Rallies

The Pound Australian Dollar (GBP/AUD) exchange rate fell around a cent on Friday, as some positive Chinese data and a slump in the US Dollar (USD) helped to bolster market risk appetite.

Markets are likely to brace for some volatility in the ‘Aussie’ this week however as trade talks between the US and China get back underway.

GBP/NZD Exchange Rate Slips as Risk Sentiment Rises

The Pound New Zealand Dollar (GBP/NZD) exchange rate edged lower at the end of last week’s session, with the ‘Kiwi’ accelerating as markets went risk-on.

Luke Trevail

Luke studied Journalism at university but quickly moved into the financial sector, initially working in retail banking before joining TorFX in 2007. As a Senior Account Manager Luke assists in overseeing the management of the company’s exposure to currency volatility. He uses his years of foreign exchange experience to produce regular news updates exploring the latest currency movements.

Contact Luke Trevail