Pound Sterling (GBP) Struggles Ahead of Brexit Vote
The Pound (GBP) was left on the defensive at the end of last week, falling against the majority of its peers amidst concerns about the progress on Brexit talks between the UK and EU.
This comes ahead of a vote on Theresa May’s Brexit deal on Tuesday, with the PM’s failure to secure a new agreement on the Irish backstop seen as scuppering any chance of the deal making it through the House of Commons.
The vote itself is likely to prompt some significant volatility in the Pound this week as it is highly likely to overshadow any other developments such as the publication of Chancellor Philip Hammond’s Spring Budget.
GBP/EUR Exchange Rate Retreats from Best Levels
The Pound Euro (GBP/EUR) exchange rate tumbled around half a cent on Friday, falling back from the pairing best levels in spite of some worrying factory order figures from Germany.
This rally in the single currency was likely driven by both a drop in the US Dollar (USD) as well as investors seeking to pick up a bargain after EUR exchange rates plummeted in the wake of the European Central Bank’s (ECB) rate decision on Thursday.
Meanwhile, the Euro may struggle today following the release of Germany’s latest industrial production figures at the start of the session as factory output was shown to have contracted sharply in January.
GBP/USD Exchange Rate Unable to Advance despite Dire US Payroll Numbers
The Pound US Dollar (GBP/USD) exchange rate continued to edge lower at the end of last week, with the broad weakness in Sterling offsetting the release of some gloomy US payroll figures.
However the ‘Greenback’ still fell back against the majority of its other peers as US payrolls expanded by just 20,000 in February, a stunning fall from the 311,000 registered the month before.
Coming up later today will be the release of the latest US retail sales figures, with the US Dollar potentially finding some support if sales growth rebounds as expected in January.
GBP/CAD Exchange Rate Dips as Canadian Employment Figures Beat Expectations
The Pound Canadian Dollar (GBP/CAD) exchange rate slumped around half a cent on Friday, with the ‘Loonie’ shrugging off a drop in oil prices thanks to the release of a stronger-than-expected domestic labour report which reveal employment growth remained healthy against forecasts it would stagnate last month.
GBP/AUD Exchange Rate Plummets as Risk-Appetite Soars
The Pound Australian Dollar (GBP/AUD) exchange rate lost almost two cents at the end of last week’s session as the weakness in the US Dollar (USD) helped to bolster market risk appetite.
GBP/NZD Exchange Rate Tumbles as Risk Demand Accelerates
The Pound New Zealand Dollar (GBP/NZD) exchange rate also fell off sharply on Friday as broad losses in Sterling and an upswing in market risk-appetite propelled the ‘Kiwi’ higher.