Pound Sterling (GBP) Puts In Best Weekly Performance since January
The Pound (GBP) took a breather on Friday, as GBP investors were left to take stock of the week’s events following a series of parliamentary votes on Brexit.
In spite of this pause, Sterling was still able to hold onto its biggest weekly gain since January on hopes that the votes will have averted a no-deal Brexit.
However GBP investors will be bracing for further volatility this week as Theresa May makes a third attempt at pushing her withdrawal deal through Parliament ahead of the latest EU Summit at the end of the week.
GBP/EUR Exchange Rate Steadies as Eurozone Inflation in Line with Expectations
The Pound Euro (GBP/EUR) exchange rate held in a narrow range at the end of last week’s session following the release of the Eurozone’s latest CPI figures.
The data confirmed that headline inflation edged up from 1.4% to 1.5% in February, in line with a preliminary reading and failing to elicit much of a response from the single currency.
Looking ahead, the Euro is likely to face some headwinds at the start of this week’s session, with the Eurozone’s latest trade balance figures expected to point to the bloc facing a trade deficit in January.
GBP/USD Exchange Rate Stable as US Industrial Data Underperforms
The Pound US Dollar (GBP/USD) exchange rate also stalled on Friday, with the ‘Greenback’ finding only limited support after a recovery in US industrial production in February proved more modest than expected.
This offset a stronger-than-expected rebound in US consumer sentiment in March and another strong rise in Job openings at the start of 2019.
Meanwhile the US Dollar is likely to remain subdued at the start of this week’s session as well as USD investors brace for the Federal Reserve’s latest rate decision on Wednesday.
GBP/CAD Exchange Rate Accelerates as Oil Prices Slip
The Pound Canadian Dollar (GBP/CAD) exchange rate advanced at the end of last week’s session, climbing around half a cent as the ‘Loonie’ was undermined by a sizable drop in oil prices following a rise in US crude production.
GBP/AUD Exchange Rate Softened by Rising Commodity Prices
After ticking up on Friday, the Pound Australian Dollar (GBP/AUD) exchange rate has begun to give up some ground again at the start of this week’s session, as the ‘Aussie’ is buoyed by rising iron ore prices.
Coming up later tonight will be the release of the minutes from the Reserve Bank of Australia’s (RBA) latest policy meeting, potentially dragging on AUD if there is any hint some policy makers may be considering a rate cut this year.
GBP/NZD Exchange Rate Slides as Risk Appetite Improves
The Pound New Zealand Dollar (GBP/NZD) exchange rate has also begun to reverse some of Friday’s gains this morning, with the ‘Kiwi’ benefiting from an upswing in risk appetite in the lull before the Fed’s rate decision on Wednesday.