Pound Sterling (GBP) Subdued as Brexit Uncertainty Drags
The Pound (GBP) was mostly rangebound at the end of last week’s session as Brexit uncertainty continued to limit the appeal of the UK currency.
This offset the release of the UK’s latest mortgage figures, which reported approvals surged to a nine-month high in March.
Coming up this week will be the Bank of England’s (BoE) latest rate decision, which could offer the Pound a leg up towards the end of the session if the recent uptick in UK data results in a more upbeat outlook from the bank.
GBP/EUR Exchange Rate Flat after Spanish Elections
The Pound Euro (GBP/EUR) exchange rate traded in a narrow range on Friday as investors were reluctant to touch to the single currency ahead of the Spanish elections held over the weekend.
This leaves Spain in the focus at the start of this week, likely limiting the appeal of the single currency as the country now faces weeks of coalition talks after no one party secured a majority.
On top of this, this Eurozone’s business confidence figures may dent the Euro this morning as well, as economists forecast sentiment will have grown increasingly pessimistic in April.
GBP/USD Exchange Rate Climbs as Headline US GDP Masks Underlying Weakness
The Pound US Dollar (GBP/USD) exchange rate appreciated at the end of last week’s session, ticking up on Friday afternoon despite US GDP rocketing in the first quarter.
While growth was reported to have smashed expectations as it rocketed up from 2.2% to 3.2% at the start of 2019, USD sentiment weakened as economists digging into the report suggested the headline figures masked a slowdown in consumer demand.
In focus at the start of this week will be the latest PCE Price Index, which may help the US Dollar bounce back this afternoon if domestic inflation accelerated in March as some economists suspect.
GBP/CAD Exchange Rate Steady despite Collapse in Oil Prices
The Pound Canadian Dollar (GBP/CAD) exchange rate traded sideways on Friday, with the oil-sensitive ‘Loonie’ able to hold its ground in spite of a 2% slump in crude prices as the slide in USD helped to boost the appeal of CAD.
GBP/AUD Exchange Rate Slips as USD Weakens
The Pound Australian Dollar (GBP/AUD) exchange rate edged away from a two-week high at the end of last week’s session as the ‘Aussie’ was given some room to breathe following the dip in the US Dollar.
GBP/NZD Exchange Rate Slides as Risk Appetite Rebounds
The Pound to New Zealand Dollar (GBP/NZD) exchange rate also weakened on Friday, with the ‘Kiwi’ riding higher on a wave of risk appetite as the US dollar slipped.