Pound Exchange Rates Daily Update: GBP Drops as EU Shoots Down May’s Brexit Extension

Pound Sterling (GBP) Faces Further Brexit Headwinds

The Pound (GBP) was driven lower again on Friday, coming under fire after the EU appeared to reject Theresa May’s latest request for a Brexit extension.

Dutch Prime Minister Mark Rutte suggested that May’s formal letter asking for a delay until 30 June raised too many questions and was not enough to grant another extension.

All eyes will now be on the emergency EU summit of leaders being held later this week, where the EU is expected to give a formal response to May’s request and discuss what might come next.

GBP/EUR Exchange Rate Drifts Lower on Upbeat German Industrial Data

The Pound Euro (GBP/EUR) exchange rate fell back on Friday, effectively wiping out the last of the pairing’s gains for the week after German industrial production accelerated faster than expected in February. Nevertheless, German imports printed at a -1.6% contraction this morning, with exports showing a -1.3% contraction in February.

This helped to offset the release of some gloomy German data in the previous session and alleviate concerns that the Eurozone’s largest economy could face a recession this year.

Looking ahead, EUR investors are likely to be focused on the European Central Bank’s (ECB) rate decision this week, with another dovish outlook from the bank potentially denting the Euro.

GBP/USD Exchange Rate Stumbles as US Payrolls Rebound

The Pound US Dollar (GBP/USD) exchange rate continued to retreat at the end of last week’s session, sliding around half a cent after USD was bolstered by a stronger-than-expected rebound in US payrolls in March.

However, taking some of the shine off the release were the accompanying earnings figures, which showed wage growth unexpectedly slowed from 3.4% to 3.2% over the same period.

Coming up today will be the release of the latest US factory order figures, which could see the US Dollar retreat if they contracted as forecast in February.

GBP/CAD Exchange Rate Muted as Canadian Employment Misses

The Pound Canadian Dollar (GBP/CAD) exchange rate was left subdued at the end of last week’s session as the ‘Loonie’ struggled to take advantage of the broad weakness in Sterling, with Canada’s latest labour report showing a shock contraction in employment growth last month.

GBP/AUD Exchange Rate Buoyed by US-China Trade Deal Hopes

The Pound Australian Dollar (GBP/AUD) exchange rate drifted lower throughout Friday’s session as the ‘Aussie’ continued to find support thanks to speculation the US and China may be close to signing off on a trade deal.

GBP/NZD Exchange Rate Muted amid RBNZ Rate Cut Speculation

The Pound New Zealand Dollar (GBP/NZD) exchange rate was mostly rangebound at the end of last week as the ‘Kiwi’ was undermined by ongoing concerns that the Reserve Bank of New Zealand may cut interest rates this year.

Matthew Andrews

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