Pound Exchange Rates Daily Update: GBP/USD Touches Three-Week High as US Wage Growth Misses

Pound Sterling (GBP) Stable as UK Service Sector Rebounds

The Pound (GBP) held its ground at the end of last week after the UK’s latest services PMI confirmed the sector returned to growth in April.

However growth was negligible and confirmed that the UK’s private sector only narrowly avoided stagnation last month, capping any gains in Sterling.

Looking ahead, GBP investors are likely to keep their eyes open for Brexit developments this week, amid speculation that Theresa May will seek to wrap up cross-party talks.

GBP/EUR Exchange Rate Steady despite Surge in Eurozone Inflation

The Pound Euro (GBP/EUR) exchange rate held its ground on Friday as the single currency was unable to translate a surge in Eurozone inflation into gains after economists warned the uptick was unlikely to last.

The Euro fared better at the start of the week however as the Eurozone final PMI readings for April suggested the bloc’s private sector got off to a slightly better start to the second quarter than had been expected.

Meanwhile, we may see the Euro find some support this morning following on from the release of Germany’s factory orders as March bought a modest rebound in order growth.

GBP/USD Exchange Rate Jumps as US Wage Growth Misses

After briefly falling, the Pound US Dollar (GBP/USD) exchange rate was able to close out last week’s session on a strong footing following the publication of US non-farm payrolls.

While headline payroll figures smashed expectations in April, the US Dollar was forced to relinquish its initial gains as markets digested the report and found wage growth remained below expectations.

The US labour market is likely to remain in focus today, with a rise in US job openings in March potentially lending support to USD exchange rates.

GBP/CAD Exchange Rate Muted as Oil Prices Stabilise

The Pound Canadian Dollar (GBP/CAD) exchange rate edged lower through the final part of last week’s session, with the ‘Loonie’ finding some ground as oil prices stabilised following a week of losses.

GBP/AUD Exchange Rate Slides as RBA Leaves Rates on Hold

The Pound Australian Dollar (GBP/AUD) exchange rate fell back overnight on Monday, with the ‘Aussie’ being bolstered by the Reserve Bank of Australia’s (RBA) decision to leave rates on hold, much to the relief of markets who had priced in a 50/50 chance of a rate cut.

GBP/NZD Exchange Rate Steady ahead of RBNZ Rate Decision

The Pound to New Zealand Dollar (GBP/NZD) exchange rate was left rangebound at the start of this week after rising on Friday, as the appeal of the risk-sensitive ‘Kiwi’ was dented by renewed US-China trade tensions.

Looking ahead, we may see some notable movement in NZD  overnight as some economists expect the the Reserve Bank of Zealand (RBNZ) to surprise with a rate cut as GDP remains well below the bank’s expectations.

Matthew Andrews

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