Pound Sterling (GBP) Flat as UK Construction Sector Contracts
The Pound (GBP) initially got off to a solid start on Monday before quickly relinquishing its gains, following the release of the UK’s latest construction PMI.
The index revealed that growth in the construction sector unexpectedly contracted In February, pulling the rug out from beneath Sterling.
Potentially placing even more pressure on the Pound today will be the release of the UK’s final PMI reading for February, which is forecast to show that growth in the dominant service sector also contracted last month.
GBP/EUR Exchange Rate Higher Ahead of ECB Policy Meeting
The Pound Euro (GBP/EUR) exchange rate trended higher through yesterday’s European session as EUR investors appeared to grow increasingly nervous ahead of the European Central Bank’s (ECB) upcoming policy meeting.
While the ECB is not expected to signal any policy changes as it concludes its March meeting on Thursday, economists warn of a more dovish outlook from the bank in light of recent Eurozone economic data.
The Euro looks poised to accelerate today however, with economists forecasting that this morning’s retail sales figures will show that sales growth in the Eurozone rebounded from -1.6% to 1.1% in January.
GBP/USD Exchange Rate Mixed as Trump Criticises USD Strength
The Pound US Dollar (GBP/USD) exchange rate traded in a wide range on Monday, with the pairing initially surging half a cent at the very start of the session after Trump warned a strong ‘Greenback’ was hurting the US economy.
Despite this, USD was able to claw back its losses in the second half of the session after demand for the currency was bolstered by the weakness of its peers.
Coming up later this afternoon will be the release of the latest ISM non-manufacturing PMI, which may see the US Dollar strengthen if the US services remained as robust as expected in February.
GBP/CAD Exchange Rate Steady as Oil Prices Climb
The Pound Canadian Dollar (GBP/CAD) exchange rate briefly stuck a new nine-month high yesterday, before quickly falling back through the second half of the European session as the oil-sensitive ‘Loonie’ was buoyed by a pick-up in crude prices.
GBP/AUD Exchange Rate Weakens amid Rising Trade Optimism
The Pound Australian Dollar (GBP/AUD) exchange rate fell back on Monday, with optimism regarding a potential US-China trade deal proving a boost to the ‘Aussie’.
The Australian Dollar was then able to consolidate these gains overnight following the Reserve Bank of Australia’s (RBA) March policy meeting as the bank appeared to steer clear of any talk of a rate cut.
GBP/NZD Exchange Rate Slides on US-China Trade Hopes
The Pound New Zealand Dollar (GBP/NZD) exchange rate also fell back yesterday evening, with the ‘Kiwi’ surging on hopes that the US and China may be close to a trade deal.
Looking ahead, the New Zealand Dollar may find some support later this afternoon, if dairy prices continue to rise following the latest global dairy auction.