Pound Sterling Exchange Rate Daily Update: GBP Stable as May Outlines her Brexit ‘Plan B’

Pound Sterling (GBP) Exchange Rates Stable as May Reveals Brexit ‘Plan B’

The Pound (GBP) held steady on Monday as markets appeared broadly upbeat as Theresa May outlined her Brexit ‘Plan B’ in Parliament yesterday afternoon.

However while the market reaction to the PM’s plans may have appeared positive, many of her critics branded it ‘Plan A in disguise’ – and it’s unclear how well it will go down when MPs debate on it next week.

Looking ahead, the release of the UK’s latest labour report may lend some support to the Pound this morning as economists forecast wage growth will have held at a decade-high in November.

GBP/EUR Exchange Rate Steady as German PPI Disappoints

The Pound Euro (GBP/EUR) exchange rate traded in a narrow range for much of yesterday’s session as markets reacted to Germany’s latest PPI figures.

Monday’s report revealed German producer prices fell by 0.4% in December – the first contraction in prices since February – stoking fears of a slowdown in Europe’s largest economy at the end of 2018.

Meanwhile the Euro may come under pressure later this morning with the Eurozone’s latest economic sentiment index potentially reflecting an increasingly gloomy outlook for the bloc in recent weeks.

GBP/USD Exchange Rate Steady as US Markets Close for MLK Day

The Pound US Dollar (GBP/USD) exchange rate remained mostly flat on Monday amid thin trade in USD as domestic markets were closed for Martin Luther-King day.

This is not to say that the ‘Greenback’ saw no movement at all, with the safe-haven US Dollar accelerating against some of its more risk-sensitive peers after the IMF cut its global growth forecasts.

Coming up today will be the release of the latest US housing figures, although their impact on the US Dollar may be negligible, with investors likely to shrug off an expected slide in sales growth as a traditional December slowdown.

GBP/CAD Exchange Rate Climbs as Oil Prices Stall

The Pound Canadian Dollar (GBP/CAD) exchange rate enjoyed modest gains ahead of Theresa May’s speech yesterday, with the ‘Loonie’ finding little support following a mixed performance by oil markets.

GBP/AUD Exchange Rate Advances Following IMF Growth Warning

The Pound Australian Dollar (GBP/AUD) exchange rate appreciated by around half a cent on Monday as the risk-sensitive ‘Aussie’ proved to be a casualty of the IMF’s downgrading of its 2019 global growth forecasts.

GBP/NZD Exchange Rate Gains as Risk Appetite Slides

The Pound New Zealand Dollar (GBP/NZD) exchange rate also climbed around half a cent yesterday, with concerns over global growth limiting market risk appetite.

Likely denting the appeal of the ‘Kiwi’ overnight will be the release of New Zealand’s latest CPI figures, with an expected stalling of inflation in the fourth quarter potentially bolstering the case for the Reserve Bank of New Zealand (RBNZ) to pursue a rate cut in 2019.

Luke Trevail

Luke studied Journalism at university but quickly moved into the financial sector, initially working in retail banking before joining TorFX in 2007. As a Senior Account Manager Luke assists in overseeing the management of the company’s exposure to currency volatility. He uses his years of foreign exchange experience to produce regular news updates exploring the latest currency movements.

Contact Luke Trevail