Pound Sterling (GBP) Muted as Inflation Falls Below 2%
The Pound (GBP) traded in a narrow range against the majority of its peers yesterday as markets reacted to the UK’s latest CPI figures.
The figures revealed that inflation slowed from 2.1% to 1.8% in at the start of 2019, falling below the Bank of England’s target range of 2% for the first time in two-years, but helping to bolster consumer spending power at the same time.
Looking ahead the focus for GBP investors today is likely to be back on Brexit as MPs are given the opportunity to debate on what comes next.
GBP/EUR Exchange Rate Jumps as Eurozone Industrial Production Disappoints
The Pound Euro (GBP/EUR) exchange rate accelerated roughly 0.5% on Wednesday as the Eurozone’s latest industrial production figures failed to impress.
Production was reported to have contracted a further 0.9% between November and December, leading year-on-year growth to slump a whopping 4.2%, the worst performance since the financial crash.
The Euro looks set for another trying day today as well, as Germany’s latest GDP figures revealed that while the country escaped a recession in the fourth quarter, it also failed to show any improvement, with GDP growth coming in at 0%.
GBP/USD Exchange Rate Stable as US Core Inflation Holds Steady
The Pound US Dollar (GBP/USD) exchange rate held in a narrow range on Wednesday following the release of the latest US inflation figures.
While headline inflation continued to retreat in January, the accompanying core reading remained unchanged, preventing the ‘Greenback’ from trading any lower.
Meanwhile, the release of the latest US retail sales figures may help to lift the US Dollar later in today’s session, if sales growth accelerated in December as some analysts suspect.
GBP/CAD Exchange Rate Flat Despite Surging Oil Prices
The Pound Canadian Dollar (GBP/CAD) exchange rate remained rangebound during yesterday’s session, with the oil-sensitive ‘Loonie’ failing to find support despite another strong upswing in crude prices.
GBP/AUD Exchange Rate Slides as Chinese Trade Data Improves
The Pound Australian Dollar (GBP/AUD) exchange rate fell around half a cent overnight on Wednesday, as above-forecast Chinese import and export figures were seen as positive for the trade-sensitive ‘Aussie’.
GBP/NZD Exchange Rate Slides as Risk Appetite Improves
The Pound New Zealand Dollar (GBP/NZD) exchange rate struck a fresh weekly low overnight on Wednesday, with the ‘Kiwi’ able to extend its RBNZ-driven gains as the upbeat Chinese trade data helped to boost market risk sentiment.