Pound Sterling Exchange Rate Daily Update: GBP Drops on Renewed No-Deal Brexit Fears

Pound Sterling (GBP) Exchange Rates Slide on Brexit No-Deal Fears

The Pound (GBP) fell back against the majority of its peers yesterday evening after a debate on Theresa May’s Brexit ‘Plan B’ saw MPs reject an amendment to prevent a no-deal scenario.

MPs instead backed an amendment for Theresa May to return to Brussels and attempt to renegotiate the Irish border backstop agreement, an outcome that has renewed Brexit uncertainty.

The UK will release its latest mortgage figures this morning, but in light of the latest Brexit developments any impact on Sterling is likely to be negligible.

GBP/EUR Exchange Rate Drifts Higher Amid Lull in Eurozone Releases

The Pound Euro (GBP/EUR) exchange rate registered modest gains during yesterday’s European session after the single currency was left subdued due to a lull in data.

This lull also left EUR investors to focus on the European Central Bank’s (ECB) recent language amid signs that the bank may leave rates on hold throughout 2019.

Looking ahead the release of Germany’s latest CPI figures will likely offer some catalyst for movement in the Euro today, with EUR exchange rates potentially weakening if inflation retreats again in January as forecast.

GBP/USD Exchange Rate Stalls as Risk Sentiment Sours

Ahead of the Brexit debate, the Pound US Dollar (GBP/USD) exchange rate traded in a narrow range on Tuesday, with the ‘Greenback’ finding support after the US government levelled criminal charges against Chinese telecommunications giant Huawei.

The changes come as high-level trade talks between the US and China get underway later today, something that has stymied hopes of a breakthrough this week.

Meanwhile the US Dollar may struggle to hold its ground today, with analysts predicting the Federal Reserve will strike a more dovish tone this evening as it concludes its first policy meeting of 2019.

GBP/CAD Exchange Rate in Limbo Ahead of US-China Talks

The Pound Canadian Dollar (GBP/CAD) exchange rate was rangebound over most of Tuesday’s session, with investors shrugging of a rally in oil as they remained reluctant to touch the risk-sensitive ‘Loonie’ ahead of the upcoming US-China trade talks.

GBP/AUD Exchange Rate Slumps as Australian Inflation Beats Expectations

The Pound Australian Dollar (GBP/AUD) exchange rate plummeted roughly two cents overnight on Tuesday, with the ‘Aussie’ heaping further pressure on Sterling after Australia’s latest inflation figures beat forecasts.

Looking to the second half of the week, AUD exchange rates are likely to be met by some volatility as US-China trade talks get underway.

GBP/NZD Exchange Rate Volatile as Risk Appetite Slides

The Pound New Zealand Dollar (GBP/NZD) exchange rate traded in a mixed range on Tuesday, initially rising as risk sentiment soured, before falling back overnight as markets shunned Sterling.

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