Pound Sterling (GBP) Exchange Rates Retreat as Profit Taking Bites
The Pound (GBP) fell back from multi-month highs against the majority of its peers at the end of last week as the currency was undermined by a bout of profit taking.
Despite this Sterling still closed the week as one of the strongest FX performers of the session after roaring higher thanks to Brexit optimism throughout the week.
GBP investors will be eager to see if the Pound can replicate its success this week, with Tuesday’s parliamentary debate on Theresa May’s Brexit ‘Plan B’ likely to be a major catalyst for movement this week.
GBP/EUR Exchange Rate Retreats from 19-Month High
The Pound Euro (GBP/EUR) exchange rate tumbled from a 19-month high on Friday, with the single currency finding support as both GBP and USD fell across the board.
However the Euro’s gains were trimmed somewhat by the release of Germany’s latest Business Sentiment index as it fell close to a three-year low in January amidst an increasingly gloomy outlook for the Eurozone.
European Central Bank (ECB) President Mario Draghi is scheduled to speak later today, potentially forcing the Euro to relinquish some ground again if he reinforces the cautious outlook struck after last week’s policy meeting.
GBP/USD Exchange Rate Surges amid Broad Weakness in the US Dollar
The Pound US Dollar (GBP/USD) exchange rate was the only major Sterling pairing that was prevented from falling back on Friday as the ‘Greenback’ was also met by heavy selling pressure.
This drop in USD appeared to be driven by a mix of persistent concerns regarding the effects of the recent US government shutdown as well as the arrest of key Trump ally Roger Stone as part of the ongoing Mueller investigation.
Looking ahead, the US Dollar may remain on the back foot at the start of this week as a lull in notable data likely leaves the focus on domestic politics.
GBP/CAD Exchange Rate Slides as Risk Appetite Swells
The Pound Canadian Dollar (GBP/CAD) exchange rate slumped at the end of last week’s session, with the ‘Loonie’ able to take advantage of rising risk appetite and a weakened Sterling to rally from a 2019 low.
GBP/AUD Exchange Rate Slumps as Markets go Risk-on
The Pound Australian Dollar (GBP/AUD) exchange rate tumbled by around a cent on Friday, with the ‘Aussie’ enjoying some support amidst a surge in investor risk appetite.
GBP/NZD Exchange Rate Dented by Risk Appetite
The Pound New Zealand Dollar (GBP/NZD) exchange told a similar story to GBP/AUD at the end of last week’s session, with the ‘Kiwi’ also climbing as markets flocked to riskier assets.