Pound Sterling (GBP) Drops Following Third Rejection of May’s Deal
The Pound (GBP) suffered another setback on Friday, dropping against the majority of its peers as Theresa May’s Brexit deal was rejected for the third time.
This cast another cloud of uncertainty over the whole Brexit process, with GBP investors fearing that this will have increased the risks of a no-deal Brexit on 12 April.
Potentially drawing attention away from Brexit temporarily this morning will be the publication of the UK’s latest manufacturing PMI, with the Pound likely to stumble if growth in the UK’s factory sector remained subdued in March.
GBP/EUR Exchange Rate Stumbles on Robust German Retail Sales
The Pound Euro (GBP/EUR) exchange rate fell around half a cent at the end of last week, as some better-than-expected German retail sales figures helped the single currency take advantage of Sterling weakness.
Destatis reported that retail sales expanded another 0.9% in February, beating forecasts of a 0.9% contraction and bolstering hopes that strong sales could help prop up Germany’s economy in the first quarter of 2019.
In focus for EUR investors this morning will be the Eurozone’s latest CPI figures, with the Euro potentially dipping if inflation slowed again last month.
Meanwhile, some very weak manufacturing PMIs were released this morning from the Eurozone, with Germany’s March figure taking a plunge to just 44.1.
GBP/USD Exchange Rate Slides as US Housing Data Impresses
The Pound US Dollar (GBP/USD) exchange rate stumbled on Friday as the ‘Greenback’ was bolstered by rising safe-haven demand in light of the latest Brexit developments.
However, supporting the uptick in the US Dollar at the end of the week was the latest US housing data, which revealed a surprisingly strong rebound in new homes sales in February.
Coming up later this afternoon will be the release of the latest ISM manufacturing index, which could see the US Dollar weaken if it drops below the two-year low struck in February.
GBP/CAD Exchange Rate Slumps as Canadian GDP Beats Forecasts
The Pound Canadian Dollar (GBP/CAD) exchange rate fell back at the end of last week’s session, falling over half a cent as Canada reported a surprise upswing in GDP in January, with growth rising 0.3% after a 0.1% contraction in January.
GBP/AUD Exchange Rate Falls to One-Month Low as Chinese Data Impresses
After moving lower at the end of last week, the Pound Australian Dollar (GBP/AUD) exchange rate struck a fresh monthly low at the start of this week’s session as the ‘Aussie’ was bolstered by some stronger-than-expected Chinese data over the weekend.
Looking ahead, the ‘Aussie’ may fall back later tonight amid speculation the Reserve Bank of Australia (RBA) will drop further hints regarding a potential rate hike this year.
GBP/NZD Exchange Rate Dips as Risk Appetite Improves
The Pound New Zealand Dollar (GBP/NZD) exchange rate also opens the week on the back foot, as upbeat Chinese manufacturing data and optimism about US-China trade negotiations help to bolster the appeal of the risk-sensitive ‘Kiwi’.