Pound Sterling (GBP) Weakens as Cross-Party Talks Stall
The Pound (GBP) was knocked back yesterday as Labour leader Jeremy Corbyn suggested that cross-party Brexit talks had stalled over the government’s refusal to budge on the issue of a customs union.
While the figures may not have been enough to lift Sterling, they did show that the UK labour market remains remarkably strong as unemployment holds at a 44-year low, while wage growth remains at a decade high.
In the spotlight today will be the UK’s latest CPI figures, with an expected rise in inflation possibly lending some support to Sterling.
GBP/EUR Exchange Rate Slips as Eurozone Sentiment Improves
The Pound Euro (GBP/EUR) exchange rate trended lower on Tuesday, with the single currency taking advantage of Sterling’s weakness thanks to an upbeat Eurozone ZEW survey.
The Eurozone’s economic sentiment index beat expectations in April, rising to a one-year high on hopes that global economic conditions are improving.
Looking ahead, EUR investors will be focused on the Eurozone’s trade figures this morning, where any rise in exports may help to dispel concerns of a slowdown in the bloc and strengthen the Euro.
GBP/USD Exchange Rate Slides despite Shock Contraction in US Industrial Production
The Pound US Dollar (GBP/USD) exchange rate fell almost half a cent on Tuesday in the face of lingering Brexit uncertainty.
However limiting the upside potential in the US Dollar was the release of the latest US industrial production figures as they revealed a shock contraction in March.
Looking ahead, the US will also release its latest trade figures today, with the US Dollar likely to struggle this afternoon if the nation’s trade deficit expanded again in February as forecast.
GBP/CAD Exchange Rate Softens as Oil Prices Rise
The Pound Canadian Dollar (GBP/CAD) exchange rate fell back yesterday, falling around half a cent as the oil-sensitive ‘Loonie’ was bolstered by another rise in crude prices.
CAD looks well positioned to strengthen later this afternoon as well, with economists forecasting that Canada’s CPI figures will show that domestic inflation rocketed up from 1.5% to 1.9% last month.
GBP/AUD Exchange Rate Slumps as China GDP Beats Expectations
The Pound Australian Dollar (GBP/AUD) exchange rate fell close to a two-month low overnight as the ‘Aussie’ found support after China’s economy expanded at a faster pace than expected in the first quarter of 2019.
GBP/NZD Exchange Rate Soars as NZ Inflation Falls Short
The Pound New Zealand Dollar (GBP/NZD) exchange rate shot higher overnight on Tuesday, with the pairing climbing over two cents in the wake of some weaker-than-expected inflation figures from New Zealand in the first quarter, reigniting fears of that the Reserve Bank of New Zealand (RBNZ) may be forced to cut rates this year.