Pound Sterling Exchange Rate Daily Update: GBP Muted as Markets await UK Services PMI

Pound Sterling (GBP) Exchange Rates Undermined by Lacklustre Construction PMI

The Pound (GBP) struggled to find support at the start of this week’s session as investors were left disappointed by the release of the UK’s latest construction PMI.

Growth in the construction sector was shown to have slumped to a 10-month low in January, with Brexit uncertainty being blamed for a contraction in commercial work.

Sterling may face further headwinds today as well, with economists forecasting that the UK’s Services PMI will do little to lift confidence in the state of the domestic economy at the start of 2019.

GBP/EUR Exchange Rate Steady as Eurozone Investor Confidence Plummets

The Pound Euro (GBP/EUR) exchange rate held steady on Monday as the UK’s poor construction PMI was offset by the release of the Eurozone’s latest investor sentiment index.

The index revealed that investor confidence in the bloc slumped to a four-year low this month as Brexit anxiety continues to build in the Eurozone amid uncertainty over whether the UK will crash out without a deal.

The Euro may struggle to keep its head above the water this morning however, with the Eurozone’s latest retail data expected to show a sharp contraction in sales growth in December.

GBP/USD Exchange Rate Muted as US Factory Orders Continue to Contract

The Pound US Dollar (GBP/USD) exchange rate traded in a narrow range during yesterday’s session following the release of some disappointing US factory figures.

Domestic factory orders were shown to have contracted for a second consecutive month in November, falling short of an expected rebound in order growth and capping demand for the ‘Greenback’ on Monday.

The publication of the ISM non-manufacturing PMI will likely be the main focus for USD investors later this afternoon, with the US Dollar accelerating if growth in the US service sector remains robust in January.

GBP/CAD Exchange Rate Flat as Oil Prices Fluctuate

The Pound Canadian Dollar (GBP/CAD) exchange rate was left rangebound on Monday, as fluctuating oil prices left the oil-sensitive ‘Loonie’ unable to find solid ground to advance.

However CAD exchange rates may find a stable footing later today if Canada’s trade deficit narrowed in December as forecast.

GBP/AUD Exchange Rate Tumbles Following RBA Rate Decision

The Pound Australian Dollar (GBP/AUD) exchange rate fell back overnight on Monday as the Reserve Bank of Australia (RBA) struck a confident tone regarding inflation and kept rates unchanged.

GBP/NZD Exchange Rate Dips as Risk Appetite Strengthens

The Pound New Zealand Dollar (GBP/NZD) exchange rate also softened last night, with the ‘Kiwi’ finding support amidst a modest pick-up in risk appetite following the RBA rate decision.

 

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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