Pound Sterling (GBP) Fluctuates as Brexit Drama Unfolds
The Pound (GBP) traded in a wide range against its peers yesterday, rising to new multi-month highs as Theresa May laid all her cards on the table by offering to resign as PM if MPs back her Brexit deal.
However Sterling was unable to sustain these gains, falling back later in the evening after MPs were unable to agree to a way forward with Brexit following a series of indicative votes.
Expect to see Brexit continue to drive volatility in GBP exchange rates today as May makes a final push to persuade MPs to back her deal before a potential vote on Friday.
GBP/EUR Exchange Rate Touches 22-Month High Following Draghi Speech
The Pound Euro (GBP/EUR) exchange rate drifted higher through much of yesterday’s session, with the single currency stumbling following a speech by European Central Bank (ECB) President Mario Draghi.
Speaking in Frankfurt on Wednesday, Draghi warned the risks to the Eurozone have grown in recent months as global conditions have deteriorated.
Coming up today will be the release of Germany’s latest CPI figures, with the Euro potentially losing ground if a subdued inflation reading results in further concerns about the Eurozone’s largest economy.
GBP/USD Exchange Rate Flat as Risk Sentiment Slumps
The Pound US Dollar (GBP/USD) exchange rate held steady throughout the European session on Wednesday, with the ‘Greenback’ blocking Sterling’s advances thanks to an upswing in safe-haven demand.
This came as the Turkish Lira (TRY) plummeted over 2.5% yesterday, after FX markets reacted negatively to Ankara’s attempts to prop up TRY by clamping down on currency speculators.
Looking ahead, a number of Federal Reserve policymakers will speak later this afternoon, potentially dragging on the US Dollar if they should echo the bank’s recent dovish outlook.
GBP/CAD Exchange Rate Climbs as Canadian Trade Figures Disappoint
The Pound Canadian Dollar (GBP/CAD) exchange rate edged higher yesterday afternoon, as the ‘Loonie’ stumbled following the release of Canada’s latest trade figures as they revealed the country’s deficit narrowed by less than expected in January.
GBP/AUD Exchange Rate Slides on Positive Progress in US-China Trade Talks
After shooting higher during Wednesday’s session, the Pound Australian Dollar (GBP/AUD) exchange rate fell back overnight as the ‘Aussie’ was lifted by hopes of progress in US-China trade talks, following reports that Beijing made unprecedented proposals regarding forced technology transfer.
GBP/NZD Exchange Rate Slips as Risk-Sentiment Improves
The Pound New Zealand Dollar (GBP/NZD) exchange rate began to relinquish some of its recent gains overnight on Wednesday, with the ‘Kiwi’ climbing as US-China trade optimism bolstered market risk appetite.