Pound Sterling Exchange Rate Daily Update: GBP Weakens as Brexit Jitters Grow

Pound Sterling (GBP) Exchange Rates Weakened by Brexit Uncertainty

The Pound (GBP) was left on the defensive on Thursday as Brexit jitters continued to drag on market sentiment.

This was not helped by Labour leader Jeremy Corbyn who stepped up calls for a general election, calling on Prime Minister Theresa May to ‘let the people decide’ about her deal.

Brexit may take a backseat today however, with the release of the UK’s GDP figures potentially bolstering Sterling if the UK economy outperforms expectations in November.

GBP/EUR Exchange Rate Flat on Cautious ECB

The Pound Euro (GBP/EUR) exchange rate remained flat on Thursday following the release of the minutes from the European Central Bank’s (ECB) latest policy meeting.

The minutes revealed that policymakers clashed on the outlook for the Eurozone, with some favouring an even more cautious view than presented by Mario Draghi last month.

ECB member Yves Mersch, will speak this morning, with the Euro likely to remain subdued if he also indicates a more subdued outlook for the Eurozone in 2019.

GBP/USD Exchange Rate Slides despite Powell Comments

The Pound US Dollar (GBP/USD) exchange rate fell roughly half a cent at the start of yesterday’s session as USD bulls re-emerged, seemingly unfazed by recent speculation of a Federal Reserve Rate pause this year.

The ‘Greenback’ also held onto its gains throughout the session despite comments from Fed Chair Jerome Powell in which he reiterated that that Fed may need to be patient on monetary policy this week.

Looking ahead, the US Dollar may stumble again at the very end of this week’s session, with the latest US CPI figures forecast to report inflation slowed in December.

GBP/CAD Exchange Rate Steady as Oil Prices Retreat

The Pound Canadian Dollar (GBP/CAD) exchange rate trod water on Thursday, with the commodity-linked ‘Loonie’ running out of momentum after oil prices began to fall back.

With no Canadian releases of note left this week, movement in CAD is likely to remain closely tied to the oil market.

GBP/AUD Exchange Rate Slumps as Australian Retail Sales Beat Expectations

The Pound Australian Dollar (GBP/AUD) exchange rate struck a three-week low overnight on Thursday as the ‘Aussie’ was bolstered by a stronger-than-expected retail sales report.

GBP/NZD Exchange Rate Bolstered by Trade Optimism

The Pound New Zealand Dollar (GBP/NZD) exchange rate sank around a cent overnight as US Treasury Secretary, Steven Mnuchin’s suggestion that China’s Vice Premier Liu He May visit Washington later this month boosted hopes that the two powers may be close to a breakthrough trade deal.

Jason Heppenstall

Jason Heppenstall is a journalist and editor at TorFX.

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