Pound Sterling (GBP) Buoyed as Cross-Party Brexit Talks Resume
The Pound (GBP) moved broadly higher on Tuesday, accelerating against the majority of its peers throughout the first half of the session with cross-party Brexit talks resuming as MPs returned from the Easter break.
However Sterling cooled a little later in the afternoon as Conservative anger at the talks became increasingly heated, with backbenchers renewing calls for Theresa May to stand down amid reports she may hold a fourth vote on her Brexit deal.
Looking ahead, the Pound may see some modest gains later this morning should the UK’s latest borrowing figures reveal that the UK ran a budget surplus for the third consecutive month in March.
GBP/EUR Exchange Rate Strengthens on Gloomy Eurozone Consumer Confidence
The Pound Euro (GBP/EUR) exchange rate enjoyed some modest gains yesterday as the single currency came under pressure following the release of some gloomy Eurozone confidence figures.
Consumer sentiment was reported to have fallen to a three-month low in April as households became increasingly jittery amidst signs that the Eurozone may be facing a prolonged slowdown this year.
In focus for EUR investors today will be Germany’s latest business climate index, with the Euro likely to come under additional pressure if business conditions in the Eurozone’s largest economy are thought to have deteriorated this month.
GBP/USD Exchange Rate Slips on Market Caution
The Pound US Dollar (GBP/USD) exchange rate fell back yesterday with the pairing touching a fresh two-month low as a bearish mood in markets sent investors flocking to the safe-haven ‘Greenback’.
Offering further support to USD later in the session was US housing data, with new home sales beating expectations in March, expanding a further 4.5% against forecasts of a 2.5% contraction.
However the US Dollar may struggle to maintain its momentum today amidst a lull in notable US data.
GBP/CAD Exchange Rate Jumps in Spite of Oil Surge
The Pound Canadian Dollar (GBP/CAD) exchange rate accelerated yesterday, with the oil-sensitive ‘Loonie’ unable to find any support despite Brent Crude passing $74 a barrel to strike a new 2019 high.
This softening in CAD was likely driven by caution ahead of the Bank of Canada’s (BoC) rate decision later this afternoon, with economists forecasting it will leave interest rates on hold again while at the same time dialling back any mention of a hike later in the year, likely denting the Canadian Dollar.
GBP/AUD Exchange Rate Rockets as Australian Inflation Slips to Two-Year low
The Pound Australian Dollar (GBP/AUD) exchange rate skyrocketed overnight on Tuesday, with the pairing jumping almost two cents as Australian inflation slumped from 1.8% to just 1.3% in the first quarter of 2019, sparking further speculation that the Reserve Bank of Australia (RBA) will move to cut interest rates this year.
GBP/NZD Exchange Rate Jumps amid RBA Rate Cut Fears
The Pound New Zealand Dollar (GBP/NZD) exchange rate also leapt higher overnight on Tuesday, as the ‘Kiwi’ fell in sympathy with the ‘Aussie’ following Australia’s gloomy inflation reading.