Pound Sterling (GBP) Bolstered by Brexit Delay
The Pound (GBP) enjoyed strong gains at the end of last week’s session as the much maligned UK currency rallied amidst renewed Brexit optimism.
This came after the EU agreed to delay Brexit beyond 29 March, granting the UK a couple more weeks in order to find a solution to avoid a no-deal Brexit.
Expect to see further volatility in Sterling this week as Theresa May potentially holds a third vote on her Brexit deal, the rejection of which could put the UK on the path to leave the EU without a deal on 12 April.
GBP/EUR Exchange Rate Surges on Abysmal Eurozone PMIs
The Pound Euro (GBP/EUR) exchange rate roared higher on Friday, jumping as much as 1.2% in the wake of the Eurozone’s latest PMI figures.
These revealed that growth in the bloc’s private sector remained subdued in March, with EUR investors particularly unsettled by the news that the manufacturing sector suffered its largest contraction in six years.
Opening this week’s session will be the release of Germany’s latest business climate index, which could see the Euro continue to retreat if sentiment fell in March.
GBP/USD Exchange Rate Gains Capped by Strong US Housing Figures
While the Pound US Dollar (GBP/USD) exchange rate rallied on Friday, Sterling’s gains proved more modest than against some of its other peers following the release of some impressive US data.
US existing home sales were shown to have surged a whopping 11.8% in February, easily outpacing expectations of a modest 2.2% rise and resulting in broad gains in the US Dollar.
Coming up at the start of this week’s session we have the publication of the latest Dallas Fed Manufacturing index, which could also support USD if it reports a similar jump in factory activity to the recent Philadelphia index.
GBP/CAD Exchange Rate Jumps as Canadian Retail Sales Disappoint
The Pound Canadian Dollar (GBP/CAD) exchange rate shot higher at the end of last week, with the ‘Loonie’ unable to put up a fight against a resurgent Sterling as it was undermined by another contraction in domestic retail sales as well as a drop in oil prices.
GBP/AUD Exchange Rate Bolstered by Global Recession Fears
The Pound Australian Dollar (GBP/AUD) exchange rate jumped by almost two cents on Friday, as the risk-sensitive ‘Aussie’ was pressured as weak PMI data from the US and the Eurozone fanned fears of a global recession.
GBP/NZD Exchange Rate Surges as Market Risk Appetite Sinks
The Pound New Zealand Dollar (GBP/NZD) exchange rate also rallied sharply at the end of the last week as falling risk appetite limited the appeal of the ‘Kiwi’.
Potentially helping NZD exchange rates rebound this week will be the release of New Zealand’s latest trade figures, with economists forecasting that the nation’s trade deficit shrank in February.
Data Releases
09:00 EUR German Business Climate (Mar)
21:45 NZD Trade Balance (Feb)