Pound Sterling Exchange Rate Daily Update: GBP Softens as Markets Brace for Brexit Debate and Votes

Pound Sterling (GBP) Exchange Rates Muted in Run up to Brexit Debate

The Pound (GBP) drifted lower at the start of this week’s session as markets braced for today’s House of Commons votes on amendments to Theresa May’s Brexit ‘Plan B’.

Sterling has roared higher in recent weeks as GBP investors discount the chances of the UK crashing out of the EU without a deal.

This will be put to the test today however as MPs debate Theresa May’s ‘Plan B’ and the various amendments that are set to be attached, with the Pound likely to enjoy additional gains if investors remain positive that the UK will avoid a no-deal Brexit.

GBP/EUR Exchange Rate Slides despite Dovish Draghi Comments

The Pound Euro (GBP/EUR) exchange rate retreated on Monday in spite of dovish remarks made by Mario Draghi at the start of the ECON committee of the European Parliament.

The President of the European Central Bank (ECB) used his opening remarks to again warn about headwinds facing the Eurozone economy as he blamed its woes on protectionism and other geopolitical factors.

In the absence of any Eurozone data, EUR investors may turn their focus towards the second half of the week, as they brace for a slew of economic releases, including the Eurozone’s latest GDP estimate.

GBP/USD Exchange Rate Slips amid Modest Rise in Safe-Haven Demand

The Pound US Dollar (GBP/USD) exchange rate edged lower during yesterday’s session as the appeal of the ‘Greenback’ was bolstered by a modest pick-up in safe-haven demand.

This came ahead of the start of crucial US-China trade talks taking place in Washington this week, with observers still pessimistic that the two power will be able to resolve their trade dispute any time in the near future.

While there is no US data of note today, we may see some bearish movement in the US Dollar ahead of the Federal Reserve’s latest rate decision on Wednesday.

GBP/CAD Exchange Rate Steady Following Rout in Oil Prices

The Pound Canadian Dollar (GBP/CAD) exchange rate remained rangebound on Monday, with the oil-sensitive ‘Loonie’ unable to take advantage of Sterling’s weakness on signs that US crude production is set to rise this year.

GBP/AUD Exchange Rate Slides In Spite of Risk Aversion

The Pound Australian Dollar (GBP/AUD) exchange rate slipped around half a cent on Monday despite a risk-off tone in markets which saw the ‘Aussie’ retreat against most of its other peers.

GBP/NZD Exchange Rate Tumbles as New Zealand Trade Figures Impress

The Pound New Zealand Dollar (GBP/NZD) exchange rate has fallen over a cent since the start of this week’s session, with the ‘Kiwi’ roaring higher overnight on Monday as New Zealand registered a sizable trade surplus in December.

 

Data Releases

19:00 GBP Parliamentary Vote on Brexit Plan B Amendments

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


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