Pound Sterling (GBP) Bolstered by Brexit Optimism
The Pound initially got off to a slow start on Wednesday following on from the release of the UK’s latest manufacturing PMI figures, which revealed the factory sector slowed in April.
However Sterling was able to push higher throughout the second half of the European session as it was buoyed by reports that a cross-party Brexit agreement could be finalised as soon as next week if Theresa May caves in to Labour demands for an EU customs union.
Coming up today will be the conclusion of the Bank of England’s May policy meeting, with the Pound potentially rising if it strikes a more confident tone in light of some stronger-than-expected growth figures in February.
GBP/EUR Exchange Rate Steady amid Thin Trading Conditions
The Pound Euro (GBP/EUR) exchange rate traded in a narrow range yesterday as the single currency was met by thin trade as European markets were closed for international workers’ day.
While this might normally have left the currency to drift lower, Tuesday’s upbeat GDP figures prevented EUR exchange rates from falling back.
Meanwhile the euro may struggle today following the publication of Germany’s latest retail sales figures, after sales growth was reported to have contracted -0.2% in March.
GBP/USD Exchange Rate Fluctuates as Fed Maintains Patience
The Pound US Dollar (GBP/USD) exchange rate initially rose yesterday, climbing to a two-week high on the back of some weak US manufacturing figures.
However USD exchange rates bounced back in the evening as the Federal Reserve kept interest rates on hold but dropped no indications that it may be planning to cut rates as some analysts had speculated.
Looking ahead, the US Dollar may rally later today if US factory orders are reported to have rebounded as forecast in March.
GBP/CAD Exchange Rate Strengthens as Oil Priced Tumble
The Pound Canadian Dollar (GBP/CAD) exchange rate climbed around half a cent yesterday as the oil-sensitive ‘Loonie’ was pressured by both a 1% drop in crude prices as well as a surprise contraction in Canada’s own manufacturing PMI.
GBP/AUD Exchange Rate Rallies as Fed Rate Cut Speculation Drops
The Pound Australian Dollar (GBP/AUD) exchange rate struck a one-month high overnight on Wednesday as the ‘Aussie’ extended its recent losses after the Fed quelled speculation of a potential rate cut this year.
GBP/NZD Exchange Rate Jumps amid RBNZ Rate Speculation
The Pound to New Zealand Dollar (GBP/NZD) exchange rate struck a new six-month high on Wednesday as the ‘Kiwi’ was rocked by speculation that the Reserve Bank of New Zealand (RBNZ) could cut interest rates as soon as next week in the wake of some weak domestic employment figures in the first quarter.