Pound Sterling (GBP) Exchange Rates Steady as Brexit Debate Resumes
The Pound (GBP) was largely flat yesterday, with the UK currency only showing tentative gains as the parliamentary debate on the EU withdrawal deal got back underway.
This also saw the UK government’s Brexit plans face another setback as it will now be required to come up with a ‘Plan B’ to the deal within three days if its initial deal is rejected next week.
Meanwhile, movement in the Pound is likely to continue to be dictated by Brexit sentiment throughout Thursday’s trading session as well, with GBP investors likely to become increasingly skittish in the build-up to next week’s vote.
GBP/EUR Exchange Rate Dips as Eurozone Unemployment Falls
The Pound Euro (GBP/EUR) exchange rate trended slightly lower yesterday as markets welcomed the Eurozone’s latest labour report.
This revealed that the bloc’s unemployment rate unexpectedly fell to 7.9% in November, striking a new decade-low.
However coming up in today’s session will be the release of the minutes from the European Central Bank’s (ECB) December policy meeting, potentially weakening the Euro if policymakers appear apprehensive regarding a rate hike in 2019.
GBP/USD Exchange Rate Lifted by Dovish Fed Speak
The Pound US Dollar (GBP/USD) exchange rate strengthen on Wednesday as another raft of dovish Fed commentary undermined the US currency.
This came as Federal Reserve policymaker, Raphael Bostic suggested that last month’s rate hike places US interest rates close to neutral and predicted only a single rate hike in 2019.
USD investors are likely to remain focused on the Fed through today’s session as well, with a speech by Chairman Jerome Powell potentially rattling markets this afternoon if he continues to stoke speculation of a rate pause from the Fed in 2019.
GBP/CAD Exchange Rate Buoyed by BoC Rate Decision
The Pound Canadian Dollar (GBP/CAD) exchange rate edged higher yesterday as the Bank of Canada (BoC) concluded its first policy meeting of the year, choosing to keep interest rates on hold while warning future hikes would ‘depend on how the outlook evolves’ in regards to oil prices and global growth.
Looking ahead, in the absence of any notable domestic data, the Canadian Dollar is likely to be influenced by oil prices, potentially bolstering the ‘Loonie’ if crude continues to push higher.
GBP/AUD Exchange Rate Steady after Weak Australian Services PMI
Despite a broad rise in demand for risk-sensitive currencies, the Pound Australian Dollar (GBP/AUD) exchange rate was left rangebound on Wednesday in the wake of a lacklustre Australian services index, which revealed the sector shed employees at an alarming rate in December.
GBP/NZD Exchange Rate Slides as Trade Tensions Ease
The Pound New Zealand Dollar (GBP/NZD) exchange rate slumped to a three-week low yesterday as positive signals from the US-China trade talks helped to bolstered demand for risk-sensitive currencies such as the ‘Kiwi’.