Pound Sterling (GBP) Exchange Rates Dip as Government Commits to Brexit Timetable
The Pound (GBP) struggled to hold its ground during yesterday’s session as Brexit uncertainty continued to weigh heavily on the currency.
Adding to this pressure were reports that the UK government has ruled out delaying its departure from the EU, even if its deal is voted down by MPs next week.
Bank of England (BoE) Governor, Mark Carney is due to speak later tonight, potentially driving movement in the Pound if he discusses the bank’s policy plans for 2019.
GBP/EUR Exchange Rate Stable amid German Recession Speculation
The Pound Euro (GBP/EUR) exchange rate remained rangebound through most of Tuesday’s session, following the release of Germany’s latest industrial production figures.
This saw a saw contraction in Germany’s industrial production figures ignite fears that the Eurozone’s largest economy may enter a technical recession in the fourth quarter.
The release of the Eurozone’s latest unemployment figures may provide some relief for the Euro however, if the bloc’s jobless rate is shown to have fallen in November.
GBP/USD Exchange Rate Slides as Trade Talks Extend
The Pound US Dollar (GBP/USD) exchange rate slumped yesterday as the ‘Greenback’ was bolstered by reports the US-China trade talks would be extended into Wednesday.
This bolstered hopes that the two sides could resolve their trade dispute ahead of the 90-day deadline that will see the US impose further tariffs on China.
The upcoming release of the FOMC minutes are likely to drive movement in the US dollar on Wednesday, with USD exchange rate potentially weakening this evening if they reveal some policymakers may favour a rate pause this year.
GBP/CAD Exchange Rate Slides as Oil Prices Climb
The Pound Canadian Dollar (GBP/CAD) exchange rate trended lower on Tuesday as the ‘Loonie’ was bolstered by the ongoing rally in oil prices, with Brent crude surging 1.5% as it pushed back towards $60 a barrel.
Meanwhile, the Bank of Canada (BoC) will conclude its first monetary policy meeting of the year later this afternoon, and while no policy changes are expected from the bank, CAD exchange rates may still find support if the it maintains plans to raise interest rates back to a neutral level.
GBP/AUD Exchange Rate Weakens Following Trump’s Positive Trade Comments
The Pound Australian Dollar (GBP/AUD) exchange rate was placed on the back foot on Tuesday as the trade-sensitive ‘Aussie’ was buoyed by a tweet from US President Donald Trump stating that the current round of US-China talks are ‘going very well’. This offset some disappointing Australian trade figures earlier in the session.
GBP/NZD Exchange Rate Slides as US-China Trade Talks Extended
The Pound New Zealand Dollar (GBP/NZD) exchange rate slumped over a cent overnight on Tuesday as the ‘Kiwi’ was bolstered by a rise in market risk appetite on hopes that an extension to the current round of US-China trade talks signals that progress is being made.