Pound Sterling (GBP) Surges as No-Deal Ruled Out
The Pound (GBP) skyrocketed on Wednesday, more than making up for Tuesday’s losses, as MPs voted to reject a no-deal Brexit.
This focus on Brexit saw investors almost completely ignore Chancellor Philip Hammond’s Spring Statement, with markets seemingly unfazed as UK growth was revised down from 1.6% to 1.2%.
Coming up later this evening will be the last of this week’s Brexit debates, with markets predicting the Pound will rally further if Parliament votes to extend Brexit, as is widely expected.
GBP/EUR Exchange Rate Soars to 21-Month High
The Pound Euro (GBP/EUR) exchange rate shot up yesterday, climbing over a cent as Brexit optimism overpowered some stronger-than-expected Eurozone industrial figures.
The robust factory output figures were still enough to support the Euro in wider trade however, helping the single currency to edge higher.
Looking ahead to the second half of the week, the Euro is likely to find itself closely tied to the outcome of Thursday’s Brexit vote in the UK, potentially helping to buoy sentiment in the single currency.
GBP/USD Exchange Rate Jumps despite Strong US Data
The Pound US Dollar (GBP/USD) exchange rate appreciated almost a cent in the run-up to yesterday’s Brexit vote on the expectation that MPs would reject no-deal.
This offset the release of some better-than-expected US durable goods figures, which revealed US goods orders were unexpectedly robust in January.
Potentially leaving the US Dollar open to further losses today will be the release of the latest US housing data, with economists forecasting that new homes sales will have contracted at the start of 2019.
GBP/CAD Exchange Rate Advance Slowed by Rising Oil Prices
The Pound Canadian Dollar (GBP/CAD) exchange rate advanced around a cent on Wednesday morning but struggled to carry this momentum through to the afternoon, with GBP/CAD stalling as the oil-sensitive ‘Loonie’ was bolstered by another upswing in oil prices.
GBP/AUD Exchange Rate Leaps to New Highs
The Pound Australian Dollar (GBP/AUD) exchange rate struck its best levels since the Brexit referendum overnight on Wednesday, with a modest improvement in Chinese retail sales unable to stem the ‘Aussie’s losses in face of rising Brexit optimism.
GBP/NZD Exchange Rate Soars on RBNZ Rate Cut Speculation
The Pound New Zealand Dollar (GBP/NZD) exchange rate also roared higher overnight on Wednesday, with the ‘Kiwi’ left vulnerable to Sterling’s advances amid concerns of a possible rate cut from the Reserve Bank of New Zealand (RBNZ).