Pound Sterling (GBP) Exchange Rates Volatile Following Brexit Vote
The Pound (GBP) fluctuated yesterday as Theresa May’s Brexit deal was thoroughly rejected by MPs in a vote last night.
Sterling ultimately rose however, with the prospects of a no-deal Brexit appearing to diminish, as MPs are expected to be given more say over the process.
However more volatility may be seen later this afternoon as a no-confidence vote in the government takes place at 13:00 GMT.
Outside of Brexit, GBP exchange rates may also be influenced by the release of the UK’s latest CPI figures this morning, with a potential slide in inflation last month likely to weigh on Sterling.
GBP/EUR Exchange Rate Muted on German GDP Figures
The Pound Euro (GBP/EUR) exchange rate struck higher yesterday, thanks in part to the release of Germany’s 2018 GDP report.
While the release suggests that Europe’s largest economy avoided a technical recession in the fourth quarter, it also revealed that growth slowed to just 1.5%, the worst pace of expansion since 2013.
Today’s session will see the final release of Germany’s December CPI reading, with the Euro likely to remain subdued if inflation is confirmed to have slumped last month as expected.
GBP/USD Exchange Rate Slips amid Market Jitters
The Pound US Dollar (GBP/USD) exchange rate slumped during the European session on Tuesday, with investors favouring the safe-haven currency as they became increasingly skittish ahead of the Brexit vote.
However, slightly dampening the appeal of USD, were the latest US PPI figures, with a sharper-than-expected contraction in producer prices increasing concerns that the US economy is slowing.
The uptrend in the US Dollar may persist today, especially if investors continue to seek a safe-harbour in face of volatility in the Pound and possibly the Euro.
GBP/CAD Exchange Rate Slides as Oil Prices Rebound
The Pound Canadian Dollar (GBP/CAD) exchange rate sank throughout Tuesday’s session, shedding around half a cent as a rebound in Brent crude back above $60 a barrel lent support to the oil-sensitive ‘Loonie’
GBP/AUD Exchange Rate Dips on Chinese Stimulus Hopes
The Pound Australian Dollar (GBP/AUD) exchange rate fell back yesterday as markets welcomed a pledge from China’s finance ministry to slash taxes in an effort to spur growth. It’s hoped these measures will help to ward off a sharp economic slump in China, fears of which have dragged on market sentiment in recent weeks.
GBP/NZD Exchange Rate Strengthens as NZ Card Spending Tumbles
The Pound New Zealand Dollar (GBP/NZD) exchange rate firmed overnight on Tuesday, with the ‘Kiwi’ stumbling as domestic retail card spending was shown to have plummeted in December.