Pound Exchange Rates Daily Update: GBP under Pressure as UK GDP Growth Strikes Six-Year Low

Pound Sterling (GBP) Exchange Rates Retreat as UK GDP Slows

The Pound (GBP) fell back against the majority of its peers yesterday after UK GDP was reported to have slowed to a six-year low in 2018.

Data published by the ONS revealed the UK economy expanded by just 0.2% in the fourth quarter, bringing annual growth to 1.4%, with analysts attributing the slide to heightened Brexit uncertainty as well as a slump in the manufacturing sector.

This downtrend is likely to persist today as well, unless Theresa May is able to reassure investors as she updates MPs about recent Brexit talks.

GBP/EUR Exchange Rate Losses Trimmed by Cautious ECB

While the Pound Euro (GBP/EUR) exchange rate softened on Monday, the pairing’s losses were trimmed somewhat by some more dovish comments from European Central Bank (ECB) Vice President, Luis de Guindos.

Speaking in Madrid yesterday, de Guindos warned that the bank expects inflation to continue to slow over the next few months and that the ECB would need to be ‘prudent’ in setting its monetary policy.

There are no major Eurozone data releases on the calendar today, potentially continuing to limit any upside in the Euro.

GBP/USD Exchange Rate Slumps, US to avoid Government Shutdown?

The Pound US Dollar (GBP/USD) exchange rate slumped around half a cent at the start of this week’s session amidst a broad rise in the US currency that propelled the Dollar index (DXY) to a fresh 2019 high.

This jump in the ‘Greenback’ appeared to be at least partly due to signs that the US may avoid another government shutdown after the Democrats and Republicans reached an agreement in principle over border security.

Looking ahead the focus for USD investors today is likely to be on the latest JOLT’s job opening figures, with another strong reading this month expected to bolster the US dollar.

GBP/CAD Exchange Rate Slumps as Canadian Employment Continues to Buoy ‘Loonie’

The Pound Canadian Dollar (GBP/CAD) exchange rate continued to trend lower on Monday as the ‘Loonie’ continued to enjoy tailwinds from the release of some solid Canadian employment figures at the end of last week.

GBP/AUD Exchange Rate Slides as Business Confidence Improves

The Pound Australian Dollar (GBP/AUD) exchange rate remained on the defensive overnight on Monday as the ‘Aussie’ accelerated following a surprise improvement in NAB’s Australian business confidence index at the start of the year.

GBP/NZD Exchange Rate Stalls on Impressive NZ Spending

The Pound New Zealand Dollar (GBP/NZD) exchange rate remained subdued overnight on Monday, with the ‘Kiwi’ finding support after domestic retail card spending rebounded by more than expected in January.

Matthew Andrews

Contact Matthew Andrews