Pound Sterling (GBP) Softens Following Weak Wage Growth
The Pound (GBP) suffered broad losses on Tuesday, with some mixed domestic employment figures unable to prevent a sell-off of the UK currency.
While unemployment in the UK may have struck a new 44-year low last month, a sharper-than-expected fall in wage growth saw investors largely snub Sterling yesterday.
Expect to see further weakness in the Pound throughout the remainder of the week as well, with a lull in UK data leaving the focus firmly on Brexit, where any potential collapse of cross-party talks will come as a blow to sentiment.
GBP/EUR Exchange Rate Losses Tempered by Gloomy Eurozone Sentiment
While the Pound Euro (GBP/EUR) exchange rate fell back yesterday, the pairing’s losses were capped after trade war fears led to pessimism in the Eurozone.
Further limiting the Eurozone’s gains were the accompanying industrial production figures, which revealed factory output in the bloc contracted for a second consecutive month in March.
However the Euro looks set to accelerate today, after Germany shrugged off fears of a recession with the release of some robust GDP figures earlier this morning.
GBP/USD Exchange Rate Stumbles as Focus Remains on US-China Trade
The Pound US Dollar (GBP/USD) exchange rate fell close to a two-week low on Tuesday as the continued focus on the US-China trade dispute resulted in investors remaining bullish on the ‘Greenback’.
This comes despite tensions appearing to cool slightly following a series of tweets by Donald Trump in which the US President suggested a deal with China would be made ‘when the time is right’.
Coming up today we have the publication of the latest US retail sales figures, which could dent the US Dollar if sales growth slowed as sharply as forecast in April.
GBP/CAD Exchange Rate Slides as Oil Rally Continues
The Pound Canadian Dollar (GBP/CAD) exchange rate softened yesterday with the easing in trade tensions allowing CAD to take advantage of the continued oil rally as Saudi Arabia reported armed drones had attacked two of its pumping stations.
The ‘Loonie’ may seek to extend its gains during today’s session as well, if Canada’s latest CPI figures show that inflation climbed in line with forecasts last month.
GBP/AUD Exchange Rate Reverses Losses as Australian Wage Growth Misses
After softening on Tuesday as market risk sentiment improved, the Pound Australian Dollar (GBP/AUD) exchange rate bounced back overnight as Australian wage growth was shown to have remained flat in the first quarter.
GBP/NZD Exchange Rate Rallies on Disappointing Chinese Data
The Pound to New Zealand Dollar (GBP/NZD) exchange rate bounced back from a near two-week low overnight on Tuesday, with the ‘Kiwi’ coming under pressure after Chinese retail sales growth fell to a 16-year low in April.