Pound Sterling (GBP) Exchange Rate Dented by Brexit Uncertainty
Trade in the Pound (GBP) was mixed yesterday as renewed Brexit uncertainty continued to drag on Sterling sentiment.
Sterling did enjoy a brief lift however following suggestions from Foreign Secretary Jeremy Hunt that ‘extra time’ may be needed for Brexit.
Barring any positive Brexit headlines, the Pound is likely to remain subdued today as the UK’s latest Manufacturing PMI is expected to show domestic factory activity slowed at the start of 2018.
GBP/EUR Exchange Rate Rallies as Italy Falls into Recession
The Pound Euro (GBP/EUR) exchange rate ticked higher on Thursday, after Italy’s latest GDP figures revealed the Eurozone’s third largest economy fell into a recession at the end of 2018.
Italy’s statistics agency reported that domestic growth shrank by 0.2% in the fourth quarter, expanding on the 0.1% contraction seen in the third quarter and resulting in Italy’s economy only recording 0.1% growth in 2018.
Potentially placing further pressure on the Euro this morning will be the release of the Eurozone’s latest CPI figures as economists forecast inflation will have slipped even further from the European Central Bank’s (ECB) target rate of 2%.
GBP/USD Exchange Rate Rangebound in Wake of Dovish Fed
The Pound US Dollar (GBP/USD) exchange rate consolidated its gains during yesterday’s session as the ‘Greenback’ was left to lick its wounds following a dovish shift in the Federal Reserve on Wednesday.
Helping to limited losses in USD yesterday was the release of the latest US housing figures, following a sharper-than-expected rebound in US new homes sales in November.
Looking ahead, the US Dollar may fall back again before the end of the week as economists forecast US payrolls will have fallen sharply in January.
GBP/CAD Exchange Rate Flat as Canadian GDP Contracts
The Pound Canadian Dollar (GBP/CAD) exchange rate was flat on Thursday as Canada’s latest monthly GDP reading revealed domestic growth contracted in November as expected.
GBP/AUD Exchange Rate Jumps as Chinese Manufacturing Disappoints
The Pound Australian Dollar (GBP/AUD) exchange rate rallied overnight on Thursday, as Chinese manufacturing growth was shown to have slumped to a three-year low in January, prompting concerns about the knock-on effects with its major trade partners such as Australia.
GBP/NZD Exchange Rate Struggles as S&P Lifts NZ Outlook
The Pound New Zealand Dollar (GBP/NZD) exchange rate remained on the back foot overnight on Thursday as the ‘Kiwi’ remained buoyed by Standard & Poor’s decision to revise New Zealand’s outlook from stable to positive.