Pound Exchange Rate Daily Update: GBP Soars but will Backstop Changes be enough to Save Theresa May’s Brexit Deal?

Pound Sterling (GBP) Skyrockets on Brexit Deal Hopes

The Pound (GBP) shot higher against its currency peers at the start of this week, propelled upwards as Theresa May won last minute concessions from the EU on the Irish backstop.

The legally binding changes now gives her deal a fighting chance of making it through Parliament later this evening, although it’s still likely to be a close run thing.

This evening’s vote will undoubtedly be the focus for currency markets today, likely overshadowing the release of the UK’s latest trade and GDP figures at the start of the session and kicking up some significant volatility in the Pound.

GBP/EUR Exchange Rate Accelerates Following Shock Contraction in German Production

The Pound Euro (GBP/EUR) exchange rate ticked higher on Monday as the single currency was undermined by the release of Germany’s latest industrial production figures.

These revealed that factory production unexpectedly slumped 0.8% in January, further stoking fears that Germany faces a prolonged slowdown in growth.

Looking ahead, this evening’s Brexit vote is also likely to have some impact on the Euro today, with the single currency weakening if a rejection of the deal creates further uncertainty over the UK’s exit from the EU.

GBP/USD Exchange Rate Gains as US Christmas Sales Revised down

The Pound US Dollar (GBP/USD) exchange rate climbed over half a cent throughout the second half of the European session yesterday as markets reacted to the latest US retail sales figures.

This saw the Greenback struggle through the afternoon after a downwards revision to December’s sales figures more than offset a modest rebound in sales growth at the start of the year.

The US Dollar may looked to rally again today however, with the latest US CPI figures forecast to show that domestic inflation remained robust in February, with strong core inflation helping to keep hope alive for a Federal Reserve rate hike sometime in 2019.

GBP/CAD Exchange Rate Rallies but Rising Oil Prices Temper Gains

While the Pound Canadian Dollar (GBP/CAD) exchange rate jumped over a cent during the US session yesterday, the ‘Loonie’ was able to minimise its losses against a resurgent Sterling thanks to a pick-up in oil prices following reports of crude production cuts from Saudi Arabia.

GBP/AUD Exchange Rate Surges as Australian Business Confidence in the Doldrums

The Pound Australian Dollar (GBP/AUD) exchange rate appreciated over two cents overnight on Monday, with the ‘Aussie’ struggling to put up much of a fight against Sterling as Australian business confidence fell to a three-year low in February.

GBP/NZD Exchange Rate Surges but Will Gains Hold?

The Pound New Zealand Dollar (GBP/NZD) exchange rate shot higher overnight as the UK and EU agreed to new legally binding changes to the Brexit deal, however some pre-vote nerves have seen the pairing give up some ground during the Asian session.

Matthew Andrews

Contact Matthew Andrews