Pound Exchange Rate Daily Update: GBP/EUR Rallies Following Dovish ECB Meeting

Pound Sterling (GBP) Slumps amid Renewed Brexit Uncertainty

The Pound (GBP) fell back against the majority of its peers yesterday, with the UK currency retreating in the face of ongoing Brexit pessimism.

Appearing to drive Sterling’s losses on Thursday were suggestions that UK officials were not expecting any changes in Brexit talks in the final 48 hours of negotiations.

In the absence of any notable UK data today, Brexit sentiment is likely to continue to dominate any movement in the Pound, potentially leaving the currency to limp over the finishing line this week.

GBP/EUR Exchange Rate Rebounds on Dovish ECB

After an initial slide, the Pound Euro (GBP/EUR) exchange rate rallied on Thursday afternoon as markets reacted to the European Central Bank’s (ECB) policy decision.

While no policy changes were made this month, the ECB propelled the Euro lower as it altered its forward guidance to indicate rates would remain on hold through to 2020, whilst also revising its economic forecast for 2019 sharply lower.

With the Eurozone having exhausted its data for the week, it’s likely we will see EUR investors remain focused on the ECB today as well, likely limiting any potential upside in the Euro.

GBP/USD Exchange Rate Tumbles as EUR Weakness Drives US Dollar Demand

The Pound US Dollar (GBP/USD) exchange rate sank around half a cent yesterday as the ‘Greenback’ found itself in demand following the drop in the Euro.

Looking ahead, the US Dollar will be in the spotlight today as the release of the latest US payrolls data takes place, with a slowdown in payrolls numbers potentially denting USD this afternoon.

GBP/CAD Exchange Rate Weakens as Oil Prices Climb

The Pound Canadian Dollar (GBP/CAD) exchange rate slumped around a cent on Thursday, with the pairing erasing almost all of its post-BoC gains as CAD was buoyed by an upswing in oil prices.

However the ‘Loonie’ may be forced to relinquish these gains again today, with the latest Canadian employment figures expected to reveal that employment growth stagnated in February.

GBP/AUD Exchange Rate Rallies as Chinese Exports Plummet

After slumping on Thursday, the Pound Australian Dollar (GBP/AUD) exchange rate began to rally overnight as a whopping 20% contraction in Chinese exports in February saw investors shy away from the trade-driven ‘Aussie’.

GBP/NZD Exchange Rate Mixed Following Chinese Trade Data

The Pound New Zealand Dollar (GBP/NZD) exchange rate is also mounting a tentative recovery this morning on the back of the latest Chinese trade figures, although ongoing Brexit angst sees the pairing remain well below its best level.

Matthew Andrews

Contact Matthew Andrews