Pound Exchange Rates Daily Update: Brexit Headwinds Cap GBP Gains

Pound Sterling (GBP) Rocked by Latest Brexit Vote

The Pound (GBP) trended higher during the European session yesterday, bolstered by optimism ahead of the latest parliamentary Brexit votes.

Also lifting Sterling yesterday was the release of the UK’s latest manufacturing PMI, which showed the UK factory sector enjoyed bumper growth in March, expanding at its fastest pace in over a year.

However the Pound then gave up some ground again later in the evening as MPs were again unable to agree on how to proceed with Brexit.

Looking ahead, the UK will release its latest construction PMI figures later this morning, potentially placing some pressure on GBP exchange rates if the construction sector continued to contract in March.

GBP/EUR Exchange Rate Climbs as Eurozone Inflation Slows

The Pound Euro (GBP/EUR) exchange rate accelerated ahead of yesterday’s Brexit vote, with as the single currency was dented by the Eurozone’s latest CPI data.

March’s figures revealed that headline inflation fell back to 1.4%, while core inflation fell to just 0.8%, further fuelling concerns over a prolonged slowdown in the in bloc.

Meanwhile the release of the Eurozone’s PPI figures could also drag on the Euro this morning if producer prices are showed to have slowed in February.

GBP/USD Exchange Rate Buoyed as US Retail Sales Tumble

The Pound US Dollar (GBP/USD) exchange rate climbed as much as 0.6% on Monday, with the ‘Greenback’ losing ground following a surprise contraction in US retail sales growth in February.

However, tempering these losses in the US Dollar was the release of the latest ISM manufacturing PMI, which revealed US factory activity expanded faster than expected last month.

Coming up this afternoon will be the latest US durable goods orders, which may see USD exchange rates pressured again if orders slumped as forecast in February.

GBP/CAD Exchange Rate Jumps as Canadian Manufacturing Slows

The Pound Canadian Dollar (GBP/CAD) exchange rate jumped around a cent yesterday, with the ‘Loonie’ coming under fire after Canada’s latest manufacturing PMI revealed the country’s factory sector was close to stagnating in March.

GBP/AUD Exchange Rate Jumps as RBA Drops Rate Cut Hints

Despite a setback yesterday evening, the Pound Australian Dollar (GBP/AUD) exchange rate was still able to post some gains overnight as the ‘Aussie’ came under fire after Reserve Bank of Australia (RBA) dropped another hint that it is looking to cut interest rates this year.

GBP/NZD Exchange Rate Soars as NZ Business Sentiment Nosedives

The Pound New Zealand Dollar (GBP/NZD) exchange rate climbed over a cent on Monday, with Sterling clinging onto its gains overnight after the ‘Kiwi’ was knocked by a sharp drop in New Zealand business sentiment in the first quarter.

The ‘Kiwi’ may look to bounce back later in today’s session however, if prices continue to rise following this afternoon’s global dairy auction.


Matthew Andrews

Contact Matthew Andrews