Pound Sterling (GBP) Exchange Rates Subdued as Brexit Looms
After surging higher on Thursday, the Pound (GBP) entered a holding pattern at the end of last week as GBP investors looked to consolidate their gains as Brexit uncertainty continued hang over the currency.
Markets are growing increasingly nervous as we approach 29 March, with the prospects of a no-deal Brexit growing by the day as Theresa May struggles to get any concessions from the EU over the Irish backstop.
Meanwhile, the Pound is likely to be centre stage at the start of this week’s session with the release of the UK’s latest GDP figures, with an expected drop in growth in the fourth quarter likely to weaken Sterling.
GBP/EUR Exchange Rate Stable as German Exports Rebound
The Pound Euro (GBP/EUR) exchange rate stabilised on Friday as EUR investors welcomed the release of Germany’s latest trade figures, which revealed a stronger-then-expected rebound in exports in December.
The figures were seen as a ‘welcome sign of life’ by analysts, who suggested this may indicate that Germany avoided falling into a technical recession at the end of 2018.
The release of Germany’s fourth quarter GDP figures will ultimately put this speculation to bed this week, with EUR investors likely to be relived if the Eurozone’s largest economy is confirmed to have avoided a recession.
GBP/USD Exchange Rate Muted on US-China Trade Concerns
The Pound US Dollar (GBP/USD) exchange rate held in a narrow range on Friday as markets remained muted amidst renewed US-China trade concerns.
This came as it appeared increasing unlikely that the two power would resolve their trade dispute before US tariffs are ramped up to 25% at the start of March.
Looking ahead, the US Dollar may struggle this week, with the latest US CPI figures expected to show domestic inflation slowed again in January.
GBP/CAD Exchange Rate Slumps as Canadian Employment Growth Soars
The Pound Canadian Dollar (GBP/CAD) exchange rate fell back at the end of last week’s session as the ‘Loonie’ enjoyed some support in the wake of Canada’s stronger-than-expected pick-up in employment growth in January.
The Canadian Dollar may seek to extend these gains at the start of this week as well, if the domestic trade deficit narrowed as forecast in December.
GBP/AUD Exchange Rate Dips as Iron Ore Soars
The Pound Australian Dollar (GBP/AUD) exchange rate fell back at the end of last week, with the ‘Aussie’ finding some support amidst an upswing in iron ore prices.
GBP/NZD Exchange Rate Steady Ahead of RBNZ Rate Decision
The Pound New Zealand Dollar (GBP/NZD) exchange rate remained flat on Friday in the run up to the Reserve Bank of New Zealand’s (RBNZ) policy meeting on Wednesday amidst rising concerns that the RBNZ may cut interest rates in 2019.