Pound Sterling (GBP) Exchange Rates Lifted by Carney Comments
The Pound (GBP) rallied against the majority of its peers yesterday afternoon as Bank of England (BoE), Governor Mark Carney asserted that markets should not prepare for a rate cut despite Brexit Uncertainty ‘fogging’ economic growth.
This followed an initial drop in Sterling following the bank’s policy meeting as the BoE cut its growth forecasts for 2019 to just 1.2%.
With no other major data releases scheduled for this week, any movement in GBP exchange rates on Friday will likely be centred on Brexit, potentially limiting any upside to the Pound.
GBP/EUR Exchange Rate Strengthens as Eurozone Growth Forecasts Downgraded
The Pound Euro (GBP/EUR) exchange rate jumped around half a cent on Thursday, with the single currency struggling to hold its ground after the European Commission slashed its growth forecasts for 2019.
The EC now expects the Eurozone economy to expand just 1.3% this year, down from a previous reading of 1.7%, with Italy forecast to grow just 0.2%.
However the Euro may fare better today, following the release of Germany’s latest trade figures which showed a stronger-than-expected rebound in exports in December.
GBP/USD Exchange Rate Rallies on US-China Trade Concerns
The Pound US Dollar (GBP/USD) exchange rate leapt around half a cent yesterday as the ‘Greenback’ gave up ground following reports US President Donald Trump and Chinese President Xi Jinping are unlikely to meet before 2 March.
This suggests that a trade deal will not be in place before the truce between the two countries expires, much to the disappointment of USD investors.
In the absence of any notable US data today, the focus may return to Washington, potentially weakening the US Dollar if it appears unlikely that another US government shutdown will be avoided.
GBP/CAD Exchange Rate Climbs as Oil Prices Retreat
The Pound Canadian Dollar (GBP/CAD) exchange rate shot up by over a cent on Thursday as the oil-sensitive ‘Loonie’ was dented by a drop in US crude prices, following a rise in US production.
The Canadian Dollar may continue to trend lower on Friday as well, as investors brace for another lacklustre rise in Canadian employment growth in January.
GBP/AUD Exchange Rate Rises on Gloomy RBA Outlook
The Pound Australian Dollar (GBP/AUD) exchange rate struck a fresh one-week high overnight on Thursday as the Reserve Bank of Australia (RBA) delivered a gloomy assessment of the domestic economy in its latest Statement on Monetary Policy.
GBP/NZD Exchange Rate Strengthens on Soft NZ Employment Figures
The Pound New Zealand Dollar (GBP/NZD) exchange rate accelerated by around a cent yesterday as the ‘Kiwi’ remained pressured by some weak domestic employment figures.