Pound Sterling (GBP) Exchange Rates Buoyed by Broad Weakness
The Pound (GBP) found itself climbing higher against the majority of its peers on Wednesday, although through no fault of its own.
Instead Sterling proved to be one of the few currencies not to get caught up in some selling action yesterday, allowing it to appreciate against many of its peers.
However there is little hope of that happening today as the Bank of England (BoE) concludes its first policy meeting of 2019 and potentially sends the Pound lower if it strikes a more dovish tone in light of growing Brexit uncertainty.
GBP/EUR Exchange Rate Gains amid German Recession Fears
The Pound Euro (GBP/EUR) exchange rate rallied as much as 0.4% yesterday after German factory orders unexpectedly dropped sharply in December.
The decline prompted renewed concerns that the Eurozone’s largest economy could be headed towards a recession and left the single currency on the back foot yesterday.
This downtrend may persist during Thursday’s session as well if the recent run of weak Eurozone data leads to a more bearish outlook from the European Commission as it publishes its latest forecasts.
GBP/USD Exchange Rate Steady amid Safe-Haven Demand
The Pound US Dollar (GBP/USD) exchange rate was rangebound on Wednesday as the ‘Greenback’ was supported by a pick-up in safe-haven demand.
Further buoying USD exchange rates was the publication of the latest US trade figures as the national trade deficit narrowed faster than expected in November.
A speech by the Federal Reserve’s Vice Chair, Richard Clarida is likely to be the focus for USD investors today, and could see the US Dollar move lower if he reinforces the recent dovish shift in the bank.
GBP/CAD Exchange Rate Strengthens as Canada’s Ivey PMI Disappoints
The Pound Canadian Dollar (GBP/CAD) exchange rate accelerated by around half a cent yesterday as the ‘Loonie’ came under fire due to a sharper-than-expected drop in the domestic Ivey PMI, with business confidence falling to a four-month low.
GBP/AUD Exchange Rate Gains on RBA Rate Cut Speculation
After jumping overnight on Tuesday, the Pound Australian Dollar (GBP/AUD) exchange rate continued to gain on Wednesday as AUD investors began to price in the possibility of a rate cut from the Reserve Bank of Australia (RBA) later this year.
GBP/NZD Exchange Rate Soars as NZ Unemployment Spikes
The Pound New Zealand Dollar (GBP/NZD) exchange rate shot higher overnight on Wednesday as a slump in employment growth saw New Zealand’s unemployment rate jump from 3.9% to 4.3% in the fourth quarter.