Pound Sterling (GBP) Gains as UK Deficit Falls to 17-Year Low
The Pound (GBP) appreciated against the majority of its rivals yesterday, rising against some weakened peers in the wake of the UK’s latest public borrowing figures.
Despite the UK borrowing £1.3bn more than expected in March, the UK budget deficit was reported to have fallen to £24.7bn over the last financial year, a 17-year low.
Looking ahead, the Pound could see some modest gains this morning if the Confederation of British Industry reports that domestic industrial orders edged higher in April as expected.
GBP/EUR Exchange Rate Climbs as German Business Sentiment Weakens
The Pound Euro (GBP/EUR) exchange rate advanced throughout the European session on Wednesday as the appeal of the single currency was dented by the release of Germany’s business climate index.
The survey revealed that businesses remained broadly gloomy in their outlook for the coming months amid concerns that the Eurozone will continue to slow.
In focus for EUR investors today will be a speech by the European Central Bank’s (ECB) Luis de Guindos, with the Euro likely to stumble if the Vice-President of the ECB reiterates the bank’s dovish outlook for the coming year.
GBP/USD Exchange Rate Steady as Markets Remain Cautious
The Pound US Dollar (GBP/USD) exchange rate traded in a narrow range yesterday as a bearish bias in markets lead investors to continue to extend their positions in the safe-haven ‘Greenback’.
This appeared to be driven at least in part by an increasingly dovish outlook for global interest rates this year, with investors speculating than a number of central banks will move to cut rates.
Coming up later this afternoon will be the release of the latest US durable goods figures, with the US Dollar likely to surge if goods orders rebounded in March as forecast.
GBP/CAD Exchange Rate Soars as BoC Turns Dovish
The Pound Canadian Dollar (GBP/CAD) exchange rate rocketed higher on Wednesday, with the pairing climbing almost two cents following the Bank of Canada’s (BoC) rate decision.
As well as keeping interest rates on hold at 1.75% this month, the BoC signalled it had dropped its bias for raising interest rates, while also slashing its 2019 growth forecast from 1.7% to 1.2%.
GBP/AUD Exchange Rate Strengthens amid RBA Rate Cut Speculation
The Pound Australian Dollar (GBP/AUD) exchange rate struck a three-week high on Wednesday, with the ‘Aussie’ coming under heavy pressure as the chances of an imminent rate cut from the Reserve Bank of Australia (RBA) surged following a slump in domestic inflation in the first quarter.
GBP/NZD Exchange Rate Jumps as Risk-Appetite Weakens
The Pound New Zealand Dollar (GBP/NZD) exchange rate hit a new five-month high yesterday, with the ‘Kiwi’ unable to find support as RBA rate speculation weakened market risk-appetite for antipodean currencies.