Pound Sterling (GBP) Subdued Following BoE Meeting
The Pound (GBP) was left trading in a narrow range yesterday despite the Bank of England (BoE) dropping some hints that interest rates could rise faster than markets currently expect.
Whilst keeping rates on hold again this month, BoE Governor Mark Carney claimed that markets were ‘under-estimating’ the pace of interest rate hikes.
However, his comments were undermined somewhat by the bank’s warnings on Brexit as it suggested ongoing uncertainty was having a ‘pronounced’ impact on business investment.
Coming up later this morning will be the release of the UK’s services PMI, which may see the Pound struggle as growth in the UK’s vital service sector is forecast to remain close to stagnation in April.
GBP/EUR Exchange Rate Flat as German Retail Sales Slide
The Pound Euro (GBP/EUR) exchange rate was rangebound on Thursday following the publication of Germany’s retail sales figures for March.
According to Destatis, German sales growth contracted 0.2% last month, slightly better than the 0.4% drop forecast, but still limiting the appeal of the single currency.
Looking ahead the Euro could find some support later this morning as economists predict Eurozone inflation will have crept higher again in April.
GBP/USD Exchange Rate Stumbles as US Factory Orders Surge
The Pound US Dollar (GBP/USD) exchange rate edged lower yesterday, with the ‘Greenback’ accelerating in the afternoon following the publication of the latest US economic data.
US factory orders were reported to have rebounded sharply in March, shooting up from -0.3% to 1.9%, roaring past expectations of a 1.5% rise and striking a seven month high along the way.
In the spotlight today will be the latest US payrolls figures, which could see the US Dollar carry through its momentum to this afternoon if they surge in April, as Wednesday’s ADP employment figures would suggest they will.
GBP/CAD Exchange Rate Steady as Oil Prices Tumble
The Pound Canadian Dollar (GBP/CAD) exchange rate held steady throughout Thursday’s session, with the oil-sensitive ‘Loonie’ finding only limited support as Brent crude fell 2% to $70 a barrel.
GBP/AUD Exchange Rate Climbs Following Gloomy Australia Services Report
The Pound Australian Dollar (GBP/AUD) exchange rate continued to edge higher overnight on Thursday, with the pairing striking a fresh one-month high after the Australia service sector was reported to have contracted for the fourth consecutive month in April.
GBP/NZD Exchange Rate Steady as Markets Eye RBNZ Meeting
The Pound to New Zealand Dollar (GBP/NZD) exchange rate held at a six-month high overnight on Thursday, with NZD struggling to find momentum as investors remained wary of the ‘Kiwi’ ahead of the Reserve Bank of New Zealand’s policy meeting next week.