Pound Sterling (GBP) Exchange Rate Muted Amid Renewed Brexit Uncertainty
The Pound (GBP) stalled during yesterday’s session as it was left to nurse its losses following a sharp drop late on Tuesday after MP’s rejected attempts to delay Brexit.
GBP investors remained wary of Sterling on Wednesday, with the EU making it clear that it was resistant to any changes to the Brexit backstop.
These concerns are likely to continue to weigh on GBP exchange rates throughout today’s session as well, especially if the EU pushes May on what her alternative to the backstop may entail.
GBP/EUR Exchange Rate Flat as German Inflation Disappoints
The Pound Euro (GBP/EUR) exchange rate held steady on Wednesday with the single currency unable to find any support from the latest Eurozone ecostats.
This comes despite French GDP proving unexpectedly robust in the fourth quarter and may have been partly attributed to domestic inflation in Germany easing to an 11-month low in January.
The release of the Eurozone’s latest GDP estimate is likely to be centre stage today, with the Euro likely to weaken if growth remained subdued at the end of 2018 as expected.
GBP/USD Exchange Rate Surges on Dovish Fed Outlook
The Pound US Dollar (GBP/USD) exchange rate rallied around a cent yesterday as markets reacted to the Federal Reserve’s latest policy meeting.
This saw the Fed drop its pledge for ‘further gradual increases’ in interest rates, likely eliminating any chance of a rate hike this year and prompting a sharp drop in the ‘Greenback’.
There’s a chance for the US Dollar to claw back some of its losses later today however, if US new home sales rebound as expected in November.
GBP/CAD Exchange Rate Stumbles as Oil Rises
The Pound Canadian Dollar (GBP/CAD) exchange rate slipped around half a cent on Wednesday, with the ‘Loonie’ gaining ground against Sterling thanks to a risk-on mood in light of a 1% rise in crude prices and dovish expectations for the Fed.
However the Canadian Dollar may fall back later this afternoon if domestic growth is shown to have contracted in November as forecast.
GBP/AUD Exchange Rate Slides Following Fed’s Dovish Shift
The Pound Australian Dollar (GBP/AUD) exchange rate slumped around half a cent yesterday evening as the ‘Aussie’ leapt higher in the wake of the Fed’s dovish rate decision and a surge in commodity prices.
GBP/NZD Exchange Rate Dives as Risk Appetite Rises
The Pound New Zealand Dollar (GBP/NZD) exchange rate fell to a two-week low overnight, with the ‘Kiwi’ finding significant support as risk appetite surged due to Fed rate expectations plummeting.