Pound Sterling (GBP) Rocked by Brexit Uncertainty
The Pound (GBP) fell heavily on Thursday as the UK currency was hit by further Brexit turbulence after MPs rejected eight possible Brexit solutions the night before.
This cloud of uncertainty was only made worst by the government’s announcement that another vote would take place today, but that it would not be the third meaningful vote on Theresa May’s Brexit deal, instead being a vote on just the withdrawal agreement itself.
Looking ahead, the UK’s latest GDP reading is likely to be sidelined today as investors brace ahead of this evening’s vote.
GBP/EUR Exchange Rate Losses Capped by Shock Fall in German Inflation
While the Pound Euro (GBP/EUR) exchange rate followed most other GBP pairings lower yesterday, its losses were capped in the wake of some lacklustre German CPI figures.
According to Destatis, German inflation slumped to an 11-month low of 1.3% in March, down from 1.5% last month and stoking concerns of an economic slowdown as it missed expectations of a modest rise to 1.6%.
The Euro may remain on the offensive today after data released this morning showed German retail sales continued to grow in February.
GBP/USD Exchange Rate Tumbles despite Downgrade to US GDP
The Pound US Dollar (GBP/USD) exchange rate fell as much as a cent on Thursday, in spite of US growth being revised down in the fourth quarter.
The final US GDP reading for saw growth revised down from 2.4% to 2.2% at the end of 2018, limiting the demand for the ‘Greenback’ in wider trade.
Looking ahead, the focus for USD investors today will likely be on the latest PCE price index, where a robust inflation reading may offer some support to the US Dollar.
GBP/CAD Exchange Rate to Rally on Weak Canadian GDP?
The Pound Canadian Dollar (GBP/CAD) exchange rate fell around a cent yesterday, with the ‘Loonie’ able to take full advantage of the drop in Sterling despite crude prices falling almost 1%.
However the Canadian Dollar may struggle to carry its momentum through to today’s session as Canadian GDP is expected to have stagnated in January.
GBP/AUD Exchange Rate Slides Following ‘Constructive’ US-China Trade Talks
After falling through the European session on Thursday, the Pound Australian Dollar (GBP/AUD) exchange rate extend these losses overnight as the ‘Aussie’ was bolstered by US-China trade optimism after reports of a constructive round of talks in Beijing.
.@USTradeRep and I concluded constructive trade talks in Beijing. I look forward to welcoming China’s Vice Premier Liu He to continue these important discussions in Washington next week. #USEmbassyChina pic.twitter.com/ikfcDZ10IL
— Steven Mnuchin (@stevenmnuchin1) March 29, 2019
GBP/NZD Exchange Rate Bolstered by Rising Risk Appetite
The Pound New Zealand Dollar (GBP/NZD) exchange rate also fell back on Thursday, as rising trade optimism helped to bolster market risk appetite.