Pound Sterling (GBP) Rallies on Renewed Brexit Optimism
The Pound (GBP) shot higher against the majority of its peers yesterday, surging in the evening following a statement from Theresa May in which she announced she would seek another Brexit extension from the EU.
This helped to offset the UK’s latest construction PMI, which revealed the sector contracted for its second consecutive month in March.
Keeping GBP investors busy today we will have both the UK’s latest services PMI as well as another round of indicative votes in the House of Commons.
GBP/EUR Exchange Rate Fluctuates, Eurozone PPI Slows
The Pound Euro (GBP/EUR) exchange rate jumped around half a cent on Tuesday, on the back of the latest Brexit developments
However also limiting the appeal of the Euro was the release of the Eurozone’s latest PPI figures, as producer prices only saw a modest rise in February, adding to concerns regarding yesterday’s underwhelming inflation reading.
The Euro looks poised to fall back this morning however as economists forecast Eurozone retail data will reveal a notable slowdown in sales growth in February.
GBP/USD Exchange Rate Losses Capped by Weak US Durable Goods
While the Pound US Dollar (GBP/USD) exchange rate fell back ahead of May’s statement yesterday, the pairing losses were trimmed somewhat by the release of the latest US durable goods orders.
The US Commerce Department reported that goods orders contracted 1.6% in February, denting the appeal of USD as it fuelled concerns of a slowdown in the US economy.
Coming up this afternoon will be the publication of the ISM non-manufacturing PMI, which may provide some further support for the US Dollar if the US service sector continued to expand at a robust pace in March.
GBP/CAD Exchange Rate Steady as Oil Prices Stall
The Pound Canadian Dollar (GBP/CAD) exchange rate was left rangebound on Tuesday, with the ‘Loonie’ left directionless amidst a lull in domestic data and a stall in oil prices.
GBP/AUD Exchange Rate Retreats on Trade Balance
After racing higher yesterday evening, the Pound Australian Dollar (GBP/AUD) exchange rate fell back again overnight, with the ‘Aussie’ finding support after Australia’s trade surplus ballooned to a new record high in February, while domestic retail sales also soared over the same period.
GBP/NZD Exchange Rate Slips as Risk Sentiment Improves
The Pound New Zealand Dollar (GBP/NZD) exchange rate also fell back overnight on Tuesday as the upbeat Australian data helped to improve market risk appetite.