Pound Sterling (GBP) Climbs as EU Grants another Brexit Delay
The Pound (GBP) found some tentative gains at the start of yesterday’s session, buoyed by a stronger-than-expected UK GDP reading in February.
Sterling was able to consolidate these gains later in the session as it became clear that the EU would grant the UK another extension to Brexit, however further upside proved limited with the delay being largely priced in by markets.
The focus for GBP investor will now likely turn to domestic politics, as Theresa May is forced to confront those in her party who balked at the idea of another extension.
GBP/EUR Exchange Rate Buoyed By Dovish ECB
The Pound Euro (GBP/EUR) exchange rate trended higher ahead of the EU summit yesterday after the single currency was knocked back by a dovish outlook from the European Central Bank (ECB) following its latest policy meeting.
While no policy changes were made by the bank this month, the Euro weakened as ECB President Mario Draghi spoke of downside risks to the Eurozone citing Brexit, weak economic data and recent tariff threats from the US.
Meanwhile the Euro is likely to struggle to find momentum this morning as data confirmed that German inflation slowed to an 11-month low of 1.3% in March.
GBP/USD Exchange Rate Mixed on US Inflation, FOMC Minutes
Trade in the Pound US Dollar (GBP/USD) was mixed on Wednesday, with the pairing relinquishing its initial gains following a sharp rise in US inflation in March.
However the ‘Greenback’ fell back against Sterling again in the evening as the minutes from the Federal Reserve’s March policy meeting confirmed the bank’s cautious outlook towards monetary policy this year.
Looking ahead, will there is little US data of note today, although USD investors will have a slew of speeches from Federal Reserve policymakers to keep them busy.
GBP/CAD Exchange Rate Steady despite Rising Oil Prices
The Pound Canadian Dollar (GBP/CAD) exchange rate remained positive on Wednesday as a sense of Brexit optimism took hold ahead of the EU summit, and the ‘Loonie’ struggled to find its feet against Sterling in spite of oil prices beginning to creep higher again.
GBP/AUD Exchange Rate Rallies as Australian PM Calls Election
After slipping yesterday evening, the Pound Australian Dollar (GBP/AUD) exchange rate rallied overnight, with the ‘Aussie’ struggling to put up a fight against a resurgent Sterling after Australia’s Prime Minister Scott Morrison called a general election for May 18.
GBP/NZD Exchange Rate Climbs amid Lull in Data
The Pound New Zealand Dollar (GBP/NZD) exchange rate also climbed overnight on Wednesday, as the ‘Kiwi’ was left a little directionless amidst a lull in impactful data,