Pound Exchange Rates Daily Update: GBP Could Face Pressure if UK Inflation Slows

Pound Sterling (GBP) Exchange Rates dip as May Addresses Parliament

The Pound (GBP) dipped on Tuesday as Theresa May updated Parliament on the current state of Brexit negotiations.

Speaking in the House of Commons, May promised MPs a final ‘meaningful’ vote on Brexit, but requested that she be given until the end of February to secure changes to the Irish backstop.

Looking ahead, the UK’s latest CPI figures are likely to be in the spotlight today, with Sterling potentially falling if inflation drops below the Bank of England’s 2% target as forecast.

GBP/EUR Exchange Rate Stumbles as USD Weakens

The Pound Euro (GBP/EUR) exchange rate traded in a wide range yesterday’s session amidst a lull in Eurozone data.

However EUR exchange rates ultimately soared at the end of the session as demand for the single currency was bolstered by a broad fall in the US Dollar (USD).

The Euro may be forced to give up some ground later this morning however as economists forecast the Eurozone’s latest industrial production figures will have contracted for a second consecutive month in December.

GBP/USD Exchange Rate Rallies despite US Job Openings Striking a Record High

The Pound US Dollar (GBP/USD) exchange rate rallied from a two-week low amidst some broad weakness in the ‘Greenback’.

This dip in USD exchange rates comes despite some impressive US jobs figures as openings stuck a new record high in December.

The US will publish its own CPI figures later this afternoon, with the US Dollar also potentially facing some pressure if core inflation slowed in line with expectations in January.

GBP/CAD Exchange Rate Dips as Oil Prices Jump

The Pound Canadian Dollar (GBP/CAD) exchange rate drifted lower during yesterday’s session as the oil-sensitive ‘Loonie’ found support after crude prices surged as much a 3% amidst OPEC production cuts and US sanctions against Iran and Venezuela.

GBP/AUD Exchange Rate Slumps as Risk Appetite Soars

The Pound Australian Dollar (GBP/AUD) exchange rate fell roughly half a cent in overnight trade on Tuesday as the ‘Aussie’ was lifted thanks to a broad upswing in market risk sentiment on the back of rising commodity prices and US-China trade optimism.

GBP/NZD Exchange Rate Plummets Following RBNZ Meeting

The Pound New Zealand Dollar (GBP/NZD) exchange rate sank around two cents overnight on Tuesday as markets reacted to the Reserve Bank of New Zealand’s (RBNZ) latest policy meeting.

While the bank left rates on hold this month, policymakers appeared surprisingly confident in their economic outlook for 2019, helping to turbo charge the ‘Kiwi’.

Matthew Andrews

Contact Matthew Andrews