Pound Sterling (GBP) Stalls on Renewed Brexit Uncertainty
The Pound (GBP) struggled to find any momentum again on Tuesday as the UK currency was buffeted by the latest round of Brexit headlines, with uncertainty rising after reports emerged that Theresa May would ask the EU to delay Brexit for an undetermined period of time.
This comes despite the UK’s latest labour report revealed that domestic unemployment had dropped to a 44-year low in January.
While Brexit is likely to remain the main focus for GBP investors today, we could see the UK’s latest CPI figures drag on the Pound if inflation remained subdued in February.
GBP/EUR Exchange Rate Steadies: Is the Eurozone on the Road to Recovery?
The Pound Euro (GBP/EUR) exchange rate held in a narrow range yesterday as ZEW published the Eurozone’s latest economic sentiment index.
This revealed a notable improvement in sentiment in March, suggesting a number of economists believe that the worst of the Eurozone’s slowdown is now behind it.
Meanwhile a lull in Eurozone data may leave the Euro a little directionless for much of today’s session, potentially accelerating later in the session if there is any notable movement in the US Dollar this evening.
GBP/USD Exchange Rate Losses Trimmed Ahead of Fed Meeting
While the Pound US Dollar (GBP/USD) exchange rate dipped yesterday, the pairing was prevented from registering any significant losses as USD investors remained cautious amidst forecasts the Federal Reserve will strike a dovish tone following its policy meeting this week.
The Fed is set to deliver its rate decision later this afternoon and while no policy changes are expected from the bank, most economists are forecasting that it will make changes to its forward guidance on interest rates.
This is likely to weaken the US Dollar this evening if the bank drops plans for multiple rate hikes this year as expected.
GBP/CAD Exchange Rate Fluctuates as Canada Publishes Latest Budget
The Pound Canadian Dollar (GBP/CAD) exchange rate traded in a wide range on Tuesday, with the ‘Loonie’ briefly soaring before coming back down to earth as markets appeared largely unimpressed by Canada’s latest budget.
GBP/AUD Exchange Rate Volatile as Trade Concerns Re-emerge
The Pound Australian Dollar (GBP/AUD) exchange rate briefly spiked overnight on Tuesday, with investors shying away from the ‘Aussie’ amid renewed US-China trade concerns following a report that Chinese officials were unwilling to accept some US demands in talks.
GBP/NZD Exchange Rate Slumps as Dairy Prices Beat Expectations
The Pound New Zealand Dollar (GBP/NZD) exchange rate slumped roughly half a cent on Tuesday, with the ‘Kiwi’ finding support following a surprisingly strong lift in dairy prices at the latest global dairy auction.
However NZD may struggle to cling onto its gains later tonight if domestic GDP falls short of expectations in the fourth quarter.