Pound Sterling (GBP) Mixed as MPs Vote to Delay Brexit
The Pound (GBP) made fleeting attempts to climb on Thursday, with Sterling putting in a mixed performance ahead of a vote on whether to delay Brexit.
With a delay already priced in by markets however there proved to be little upside to GBP as MPs overwhelming voted to delay Brexit beyond 29 March.
In the absence of any UK economic data, the focus is likely to remain on Brexit today, with GBP investors likely to speculate on what impact a delay will have on the Pound going forward.
GBP/EUR Exchange Rate Flat as German Inflation Misses
The Pound Euro (GBP/EUR) exchange rate held in a narrow range yesterday ahead of the Brexit vote, with the single currency unable to push higher amid the lull following the release of Germany’s latest CPI figures.
While headline inflation in Germany was shown to have accelerated from 1.4% to 1.5% in February, this fell short of a preliminary reading of 1.6%, limiting the appeal of the Euro.
This may bode poorly for the Euro in today’s session as well, if this is reflected in the Eurozone’s final inflation reading for February as well.
GBP/USD Exchange Rate Tempered by Weak Chinese Data
The Pound US Dollar (GBP/USD) exchange rate stumbled at various points throughout Thursday’s trading session, as the ‘Greenback’ found support after some uninspiring Chinese data.
Concerns over global growth flared again yesterday as Chinese industrial production was shown to have fallen to its slowest pace since 2002 between January and February, driving investors towards the safe-haven US Dollar.
The US will release its own industrial production figures later this afternoon, which may provide further support for the US Dollar if factory output recovered from its January slump as forecast.
GBP/CAD Exchange Rate Fluctuates as Canadian House Prices Contract
Trade in the Pound Canadian Dollar (GBP/CAD) exchange rate was erratic yesterday, with Sterling sentiment mixed ahead of the vote to delay Brexit, while the ‘Loonie’ struggled to find its feet falling on a dip in oil prices and a surprise contraction in Canadian house prices.
GBP/AUD Exchange Rate Slips on US-Trade Talk
The Pound Australian Dollar (GBP/AUD) exchange rate briefly struck a post-referendum high before falling back yesterday as the ‘Aussie’ found some support following positive comments from President Trump regarding the US-China trade dispute.
GBP/NZD Exchange Rate Slides as NZ Manufacturing Picks up
The Pound New Zealand Dollar (GBP/NZD) exchange rate also fell back on Thursday, with the ‘Kiwi’ gaining overnight as New Zealand’s latest manufacturing PMI beat expectations.