Pound Sterling (GBP) Stalls as Brexit Jitters Reach Fever Pitch
The Pound (GBP) remained paralysed on Tuesday as a cloud of Brexit uncertainty continued to hang over the UK currency.
In focus yesterday was Theresa May’s trip to Paris and Berlin, where she met with Emmanuel Macron and Angela Merkel in a last ditch attempt to sell her request for a short Brexit extension.
Everything will now hinge on this evening’s EU summit, which may help to lift Sterling if EU leaders grant May another stay of execution, or push it off a cliff if the UK is left to crash out of the EU without a deal on Friday.
GBP/EUR Exchange Rate Losses Capped by US Tariff Threat
The Pound Euro (GBP/EUR) exchange rate edged lower yesterday, but was prevented from registering any major losses amidst concerns over renewed EU-US trade tensions.
This comes as a result of a threat from the US to impose $11bn worth of tariffs on EU exports in an ongoing spat over EU subsidies for Airbus, with markets fearing this could escalate into another tit-for-tat situation similar to the US and China.
In focus for EUR investors today will be the European Central Bank’s (ECB) latest rate decision, which could see the Euro face some headwinds if the outlook from the bank remains dovish.
GBP/USD Exchange Rate Stable as US Job Openings Fall Short
The Pound US Dollar (GBP/USD) remained flat on Tuesday as the appeal of the ‘Greenback’ was dented following a sharp drop in domestic job openings.
Confidence in the US job market was knocked yesterday as the JOLTs data showed that listings tumbled from 7.6 million to 7 million in February, their lowest levels in 11 months.
Coming up today will be the release of the latest US inflation figures and minutes from the Federal Reserve, with the latter likely to overshadow the former and weaken the US Dollar if they highlight concerns over a slowdown in the US economy.
GBP/CAD Exchange Rate Steady as Oil Prices Stall
The Pound Canadian Dollar (GBP/CAD) exchange rate remained rangebound yesterday, with the oil-sensitive ‘Loonie’ unable to find any momentum after crude prices began to fall back from the highs struck on Monday.
GBP/AUD Exchange Rate Flat as RBA Rate Cut Concerns Mount
The Pound Australian Dollar (GBP/AUD) exchange rate remained rangebound overnight on Tuesday as the ‘Aussie’ struggled to find any momentum following the IMF’s downgrading of global growth, which renewed concerns the Reserve Bank of Australia (RBA) may be pushed into cutting interest rates this year.
GBP/NZD Exchange Rate Muted Amidst Rate Speculation
The Pound New Zealand Dollar (GBP/NZD) exchange also remained flat overnight amidst similar concerns that slowing global growth will force the Reserve Bank of New Zealand (RBNZ) to cut rates in the foreseeable future.