Pound Sterling (GBP) Exchange Rates Bolstered by Brexit Delay Speculation
The Pound (GBP) rallied at the end of last week’s session amid reports that Brexit may be delayed.
Citing anonymous cabinet sources, the UK’s Evening Standard newspaper reported the UK’s may be forced to extend the timetable for leaving the EU due to the amount of outstanding legislation that needs to be passed first.
Looking ahead, Brexit speculation is likely to continue to dominate GBP exchange rates throughout the first half of this week ahead of the parliamentary vote on the EU withdrawal bill on Tuesday.
GBP/EUR Exchange Rate Surges as Italian Data Disappoints
The Pound Euro (GBP/EUR) exchange rate roared higher on Friday, mostly on the back of improving Brexit sentiment but partly driven by some poor Italian economic data.
Italian industrial production was shown to have contracted at its fastest pace in four month in November, renewing concerns that Italy’s economy may have contracted in the fourth quarter.
This may also be reflected in this morning’s Eurozone reading, with the Euro potentially weakening if factory output fell across the bloc in November.
GBP/USD Exchange Rate Rises as US Inflation Slows
The Pound US Dollar (GBP/USD) exchange rate surged higher on Friday, with a dip in US inflation failing to offer the ‘Greenback’ support against a resurgent Sterling.
While the slide in inflation was partly attributed to the fall in oil prices at the end of 2018, analysts still speculated this would be enough to rule out a rate hike from the Federal Reserve in the first quarter of 2019.
Coming up this week will be the release of the latest US retail sales figures, with a positive reading potentially offering some support to the US Dollar.
GBP/CAD Exchange Rate Rises as Oil Prices Drop
The Pound Canadian Dollar (GBP/CAD) exchange rate trended higher at the end of last week, with an almost 2% slide in crude prices undermining the oil-sensitive ‘Loonie’.
Looking ahead, movement in the oil market is likely to continue to act as a catalyst for CAD exchange rates this week, with the only notable domestic release coming at the tail end of the week with the publication of Canada’s latest inflation figures.
GBP/AUD Exchange Rate Fluctuates as Australian Retail Sales Accelerate
The Pound Australian Dollar (GBP/AUD) exchange rate initially fell on Friday, with the ‘Aussie’ being propelled higher by some stronger-than-expected retail sales figures and rising US-China trade optimism, before positive Brexit sentiment saw the pairing reverse course.
GBP/NZD Exchange Rate Mixed on US-China Trade Optimism
The Pound New Zealand Dollar (GBP/NZD) exchange rate also fluctuated at the end of last week, with reports that China’s Vice Premier Liu He may visit Washington later this month for high-level trade talks briefly helping to propel the risk-sensitive ‘Kiwi’ higher.
10:00 EUR Industrial Production (Nov)