Pound Sterling (GBP) Exchange Rates Strengthened by Referendum Speculation
The Pound (GBP) enjoyed modest gains on Thursday as speculation of a second referendum began to pick up pace.
This was likely part in thanks to comments from Jeremy Corbyn who appeared to throw his support behind a ‘people’s vote’ if a no-deal Brexit looks likely.
While Brexit is likely to remain the main catalyst for Sterling today, also potentially influencing the Pound will be the release of the UK’s latest retail sales figures, with an expected contraction in sales growth potentially dragging on GBP.
GBP/EUR Exchange Rate Struggles on Weak Data
The Pound Euro (GBP/EUR) exchange rate ticked higher yesterday as the recent run of weak Eurozone data weighs on the single currency.
This was not helped by the release of the bloc’s latest CPI figures as they confirmed inflation fell to an eight-month low in December.
In the absence of any notable data the Euro may struggle to find momentum on Friday, leaving EUR to languish at its recent lows.
GBP/USD Exchange Rate Steady amid Rising Safe-Haven Demand
The Pound US Dollar (GBP/USD) exchange rate remained flat for much of Thursday’s session as USD was buoyed by deteriorating risk appetite and a dip in equities which drove investors towards the safe-haven US currency.
However the ‘Greenback’ struggled to build on this momentum in the afternoon, falling back against Sterling despite the release of a stronger-than-expected Philadelphia Fed manufacturing index.
The release of the latest US Consumer Confidence figures may exert some pressure on the US Dollar later today, with many analysts forecasting the ongoing government shutdown will have dragged on sentiment this month.
GBP/CAD Exchange Rate Jumps as Oil Prices Slide
The Pound Canadian Dollar (GBP/CAD) exchange rate continued to be driven by movement in oil markets yesterday, with a 1% drop in Brent crude limiting the appeal of the oil-sensitive ‘Loonie’.
The release of Canada’s latest CPI figures is likely to drive CAD at the end of the week however, with a dip in inflation potentially softening the Canadian Dollar.
GBP/AUD Exchange Rate Dips on US-China Trade Doubts
The Pound Australian Dollar (GBP/AUD) exchange rate accelerated yesterday as US-China trade optimism was cooled by remarks from US Trade Representative Robert Lighthizer regarding a lack of progress in talks.
GBP/NZD Exchange Rate Surges as Risk Appetite Slumps
The Pound New Zealand Dollar (GBP/NZD) exchange rate also jumped on Thursday, with a slight downturn in risk appetite and weaker commodity prices, limiting the appeal of the ‘Kiwi’.