Pound Sterling (GBP) Steady as Brexit Chaos Continues
The Pound (GBP) was mostly rangebound against its peers yesterday, with investors wary about the UK currency as Brexit uncertainties continued to swirl.
Also limiting the appeal of Sterling on Wednesday was the publication of the UK’s latest services PMI, with investors fearing the UK’s economy will have stagnated in the first quarter following a shock contraction in the services sector in March.
Looking ahead, all eyes will be on Theresa May and Jeremy Corbyn again today as they continue talks in an attempt to find a workable solution to Brexit.
GBP/EUR Exchange Rate Subdued amid Slowdown in Eurozone Retail Sales and Dire German Factory Orders
The Pound Euro (GBP/EUR) exchange rate was left muted for much of Wednesday’s session with the single currency finding limited support following the release of the Eurozone’s latest retail sales figures.
These revealed that sales growth in the bloc slowed from 1.3% to 0.4% in February and while slightly ahead of forecasts it was enough to rob the Euro of any momentum.
Looking ahead the Euro may struggle today after data showed that German factory orders contracted at their fastest pace in two years in February, sparking further concerns that the Eurozone’s largest economy may have stalled in the first quarter.
GBP/USD Exchange Rate Buoyed by Weak US Services PMI
Trade in the Pound US Dollar (GBP/USD) exchange rate remained mostly robust yesterday, as the ‘Greenback’ came under fire following a rise in risk appetite as well as a disappointing ISM non-manufacturing PMI which revealed growth in the US services sector in March was at its worse since August 2017.
Further denting demand for the US Dollar were the latest ADP employment figures, which revealed job creation in the US private sector struck an 18-month low in March.
This may bode poorly for the more influential non-farm payrolls print at the end of the week, something which could weigh on USD exchange rates through today’s session.
GBP/CAD Exchange Rate Rangebound as Oil Prices Stall
The Pound Canadian Dollar (GBP/CAD) exchange rate traded in a narrow range on Wednesday as the oil-sensitive ‘Loonie’ struggled to find momentum as crude prices stalled.
GBP/AUD Exchange Rate Mixed Following Strong Australian Data
Trade in the Pound Australian Dollar (GBP/AUD) exchange rate was mixed yesterday, falling during the European session on the back of some positive Australian data before bouncing back overnight as risk-appetite began to fade again.
GBP/NZD Exchange Rate Steady as Risk-Rally Fades
The Pound New Zealand Dollar (GBP/NZD) exchange rate steadied overnight on Wednesday, as a fall in market risk-sentiment saw the ‘Kiwi’ stall.