Pound Sterling (GBP) Exchange Rates Firms ahead of Brexit Vote
The Pound (GBP) edged slightly higher yesterday as markets took stock of the situation ahead of the ‘meaningful vote’ on Theresa May’s Brexit deal.
Sterling briefly rose at the tail end of the session however following reports that a pro-Brexit faction within the Conservative Party may back the government’s deal.
The vote itself is set to take place later this evening and is expected to result in considerable volatility in the Pound if it is rejected as expected.
GBP/EUR Exchange Rate Climbs on Recession Speculation
The Pound Euro (GBP/EUR) exchange rate strengthened yesterday, with the single currency dented by the release of some gloomy industrial figures from the Eurozone.
The data revealed a sharp slump in factory production across the bloc in November, leading markets to shun the Euro amid mounting concerns some of Europe’s largest economies may have contracted at the end of 2018.
EUR investors will be on the lookout for a speech by European Central Bank (ECB) president Mario Draghi later tonight, with any signs that the recent slowdown in the Eurozone may have dampened Draghi’s outlook for 2019 likely to weaken the Euro.
GBP/USD Exchange Rate Rises as US Inflation Slows
The Pound US Dollar (GBP/USD) exchange rate initially traded in a narrow range on Monday, as the safe-haven USD was buoyed by China’s lacklustre trade data.
However the ‘Greenback’ fell back later in the European session as Trump promised to reach a trade deal with China, limiting the appeal of the US Dollar.
Coming up overnight on Tuesday will be the release of the latest US PPI figures, with an expected slide in producer prices potentially limiting the appeal of the US Dollar.
GBP/CAD Exchange Rate Strengthens as Oil Falls below $60
The Pound Canadian Dollar (GBP/CAD) exchange rate strengthened yesterday as the oil-sensitive ‘Loonie’ was undermined as Brent Crude fell back below $60 a barrel on the assumpption that a slowdown in China will limit global consumption.
GBP/AUD Exchange Rate Surges as China Trade Data Disappoints
The Pound Australian Dollar (GBP/AUD) exchange rate jumped on Monday as China’s latest trade data printed well below expectations, stoking fears of an imminent slowdown in China’s economy, Australia’s largest trading partner.
GBP/NZD Exchange Rate also Lifted by China Concerns
The Pound New Zealand Dollar (GBP/NZD) exchange rate also rose yesterday, as the ‘Kiwi’ was shunned after the weak Chinese data limited demand for risk-sensitive currencies.
The New Zealand Dollar may mount a comeback later this afternoon however, if prices continue to rise at the latest global dairy auction.