Pound Exchange Rates Daily Update: Sterling Stalls on Fears Headline GDP Figures Mask Underlying Weakness

Pound Sterling (GBP) Flat on Underlying GDP Concerns

The Pound (GBP) was left to trade in a narrow range at the end of last week’s session, despite the UK’s GDP figures showing a strong upswing in growth in the first quarter of 2019.

Appearing to fuel this lacklustre response were warnings from analysts that the uptick in growth was likely to prove temporary as businesses burn through the inventories they built up ahead of Brexit.

Looking to the week ahead, we may see the Pound attempt to rally, if the UK’s latest employment figures reveal the recent uptick in wage growth carried through into March.

GBP/EUR Exchange Rate Steady as Focus on US-China Trade Relationship Intensifies

The Pound Euro (GBP/EUR) exchange rate remained rangebound on Friday as EUR investors remained wary of the escalation of the US-China trade dispute.

While not directly impacting the Eurozone, the rise in tensions came as a stark reminder that Donald Trump has also set his sights on levelling the US trade deficit with the bloc.

Coming up this week, we have the publication of Germany’s latest GDP figures, with a return to growth for the Eurozone’s largest economy likely to lift the Euro.

GBP/USD Exchange Rate buoyed as US Inflation Misses

The Pound US Dollar (GBP/USD) exchange rate drifted higher at the end of last week’s session, aided by a softer-than-expected US inflation reading in April.

The headline US CPI was reported to have climbed from 1.9% to 2% in April, missing forecasts that it would rise to 2.1%. This failed to dispel concerns that lacklustre price growth could still press the Federal Reserve to lower rates this year.

However this week could see the US Dollar mount a recovery if trade tensions between the US and China continue to escalate.

GBP/CAD Exchange Rate Tumbles Following Impressive Employment Data

The Pound Canadian Dollar (GBP/CAD) exchange rate fell over half a cent to strike a fresh one-week low on Friday as investors flocked to the ‘Loonie’ after Canada reported domestic employment rocketed by over 100,000 in April – the largest gain on record.

GBP/AUD Exchange Rate Lifts as Markets Wait for Chinese Tariff Retaliation

After closing last week’s session fairly stable, the Pound Australian Dollar (GBP/AUD) exchange rate has begun to strengthen during early trade this week with markets expecting trade tensions to escalate as China reacts to the hiking of US tariffs last week.

GBP/NZD Exchange Rate Climbs as Trade Tensions Mount

The Pound to New Zealand Dollar (GBP/NZD) exchange rate finds itself in a similar situation to GBP/AUD, with the ‘Kiwi’ giving up ground as a risk-off mood sweeps through markets.

Matthew Andrews

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