Pound Sterling (GBP) Weakens as Brexit Pessimism Grows
The Pound (GBP) fell across the board yesterday as concerns over the lack of progress in cross-party Brexit talks bubbled over.
This appeared to be spurred on by comments from a Labour spokesperson, who poured cold water on the prospect of the Conservatives and Labour reaching a deal any time soon.
Expect to see movement in Sterling remain driven by Brexit sentiment today as the absence of any notable UK data leaves investors focused on headlines
GBP/EUR Exchange Rate Slides as German Recession Fears Fade
The Pound Euro (GBP/EUR) exchange rate continued to weaken on Wednesday, with the pairing striking its worst levels since February following the publication of Germany’s GDP data.
The figures came as a major relief to EUR investors as fears that Germany could fall into a recession were dispelled after growth went from 0% to 0.4% in the first quarter.
Further lifting the single currency was the announcement that Donald Trump would delay plans to impose news tariffs on car imports, a major boon to European automakers.
Coming up today we have the release of the Eurozone’s latest trade figures, which will be closely watched for any signs that the deteriorating global trade conditions seen so far in 2019 have begun to impact the Eurozone.
GBP/USD Exchange Rate Plummets to a Three-Month Low
The Pound US Dollar (GBP/USD) exchange rate fell to a new three-month low on Wednesday as Sterling faced broad losses.
However, in wider markets the ‘Greenback’ was more subdued, as both US retail sales and industrial production came in worse than expected in April, suggesting the US economy may be off to a slow start in the second quarter.
While US data is limited today, expect the US Dollar to continue to trade robustly as escalating US-China trade tensions continue to drive inflows towards the safe-haven currency.
GBP/CAD Exchange Rate Sinks as Canadian Inflation Rebounds
The Pound Canadian Dollar (GBP/CAD) exchange rate stumbled around half a cent yesterday as the ‘Loonie’ was able to shake off a fall in oil prices, while Canadian inflation was shown to have climbed back above 2% and into the Bank of Canada’s target range in April.
GBP/AUD Exchange Rate Rallies as Australian Unemployment Rises
The Pound Australian Dollar (GBP/AUD) exchange rate bounced back from a two-week low overnight on Thursday, climbing around half a cent as a stronger-than-expected rise in Australian unemployment in April, stoked fears of a Reserve Bank of Australia (RBA) rate cut in the coming months.
GBP/NZD Exchange Rate Slips on Trade Hopes
The Pound to New Zealand Dollar (GBP/NZD) exchange rate fell around a cent during yesterday’s session as the ‘Kiwi’ was able to take advantage of the weakness in Sterling thanks to comments from Donald Trump, which bolstered hopes a US-China trade deal could still be reached.