Pound Exchange Rates Daily Update: GBP/EUR Bolstered by Soft Eurozone PMIs

Pound Sterling (GBP) Struggles In Spite of Solid UK Retail Data

Trade in the Pound (GBP) was mixed towards the end of last week, with Sterling struggling to carve out any broad gains despite some upbeat UK retail sales data.

The ONS reported that sales growth rose from 0.6% to 1.1% in March, easily beating forecasts that it would have contracted -0.3%.

Expect UK data to take a back seat again this week, with the Pound likely to be driven by Brexit once more after MPs return from their Easter recess.

GBP/EUR Exchange Rate Climbs as Eurozone PMIs Disappoint

The Pound Euro (GBP/EUR) exchange rate rallied at the tail-end of last week’s session, with the single currency losing ground amid concerns over slowing growth in the Eurozone.

This came in the wake of the Eurozone’s latest PMI release, which revealed that the bloc’s private sector continued to stagnate in April, confirming fears that the Eurozone’s slowdown would extend beyond the first quarter.

Meanwhile the Euro may relinquish some of the gains made at the start of this week’s session today, if consumer confidence in the bloc remained as gloomy in April as forecast.

GBP/USD Exchange Rate Slips as US Retail Sales Dispel Recession Fears

The Pound US Dollar (GBP/USD) exchange rate drifted lower in the second half of last week as the US published its own retail sales figures.

These also beat forecasts as they rebounded from -0.2% to an 18-month high of 1.6% which, coupled with the recent drop in jobless claims, helped to dispel fears the US was facing an imminent recession.

In focus for USD investors this week will be a preliminary reading for US GDP in the first quarter, which could see the US Dollar relinquish some ground if growth is shown to have slowed as expected in the three-months to March.

GBP/CAD Exchange Rate Flat on Mixed Canadian Data

The Pound Canadian Dollar (GBP/CAD) exchange rate traded in a narrow range towards the end of last week following some mixed Canadian economic data.

While retail sales impressed in February, this was undermined by the accompanying employment figures which saw domestic employment growth revised from 36,000 to -21,200 over the same period.

GBP/AUD Exchange Rate Rallies as Risk Appetite Falters

After closing last week trading sideways, the Pound Australian Dollar (GBP/AUD) exchange rate appears to have found its feet at the start of this week’s session as the ‘Aussie’ came under pressure from a broad fall in risk appetite.

GBP/NZD Exchange Rate Bolstered as Market Risk Sentiment Weakens

The Pound New Zealand Dollar (GBP/NZD) exchange rate traded similarly to GBP/AUD at the start of this week, with the ‘Kiwi’ also facing headwinds due to markets shying away from more risk-sensitive currencies.

Matthew Andrews

Contact Matthew Andrews