Pound Sterling (GBP) Exchange Rate Slumps as Manufacturing PMI Disappoints
Following a difficult session, the Pound (GBP) limped over the finish line last week as markets were left disappointed by the release of the UK’s latest manufacturing PMI.
The slowdown in the UK’s factory sector at the start of 2019 appeared to underscore the impact of Brexit uncertainty on the British economy, with analysts warning there was a ‘clear risk of recession’ for UK manufacturers.
This will be followed by the release of the UK’s latest construction PMI later this morning, with the pound potentially extending its losses if the construction sector suffered a similar slowdown last month.
GBP/EUR Exchange Rate Slumps as Eurozone Core Inflation Accelerates
The Pound Euro (GBP/EUR) exchange rate tumbled around half a cent on Friday after a surprise rise in Eurozone core inflation.
This rise in underlying inflation was seen as ‘a rare bit of good news for the European Central Bank’ and helped to keep the flame alive – however small – for a potential rate hike from the (ECB) in 2019.
However the Euro may struggle to maintain its momentum at the start of this week’s session amidst a lull in notable Eurozone data.
GBP/USD Exchange Rate Slides as US Payrolls Beat Expectations
The Pound US Dollar (GBP/USD) exchange rate retreated at the end of last week as USD investors cheered a surprisingly strong US payroll release.
The latest payroll figures reported that the US workforce expanded by 304,000 in January smashing forecasts of a more modest 165,000 rise.
The US Dollar may look to extend these gains at the start of this week’s session as well, should domestic factory orders have rebounded as forecast in November.
GBP/CAD Exchange Rate Slides despite Canadian Growth Concerns
While the Pound Canadian Dollar (GBP/CAD) exchange rate slumped around a cent at the end of last week, the ‘Loonie’ struggled to replicate its gains against any of its other peers as Canada’s recent GDP figures continued to limit its appeal.
GBP/AUD Exchange Rate Strengthens as Iron Ore Prices Continue to Rally
The Pound Australian Dollar (GBP/AUD) exchange rate slipped on Friday, with the ‘Aussie’ gaining as it was lifted by a surge in iron ore prices and a rise in risk sentiment.
The Australian Dollar may come under pressure at the start of this week’s session however as the Reserve Bank of Australia (RBA) concludes its latest policy meeting later tonight amidst speculation the bank may signal a potential rate cut later in the year.
GBP/NZD Exchange Rate Fluctuates on US Data
The Pound New Zealand Dollar (GBP/NZD) exchange rate traded in a wide range at the end of last week, with the ‘Kiwi’ initially gaining amidst rising risk appetite, before falling back following the release of some upbeat US data.