Pound (GBP) Exchange Rates Daily Update: Sterling at Multi-Month Lows as May Agrees to Set Timetable for Departure

Pound Sterling (GBP) Falls as May Agrees to Set Departure Date

The Pound (GBP) extended its losses yet again on Thursday, with GBP exchange rates propelled to new multi-month lows as Theresa May met with the 1922 Committee to discuss her future as PM.

While she managed to avoid giving a date of departure at yesterday’s meeting, Theresa May agreed to set out a timetable for her resignation following a vote on her Brexit deal at the start of June, leading to speculation she will be out before the summer recess.

Expect to see the Pound remain sensitive to political developments through to the end of the session, with a cross-party deal now looking all but impossible given that May’s premiership now has a clear shelf life.

GBP/EUR Exchange Rate Muted as Italian Politics Weigh on Sentiment

The Pound Euro (GBP/EUR) exchange rate found its losses capped yesterday, as the single currency faced pressure from Italy.

This comes as there are signs that Deputy Prime Minister Matteo Salvini could seek to break away from his coalition partners the Five Star Movement, as recent polling numbers suggest that support for Salvini’s League is growing.

These concerns are likely to stretch into today’s session as well, with fears that a Salvini-headed government would double down on his party’s populist policies and put Italy back on a collision course with the EU over spending plans.

GBP/USD Exchange Rate Weakened by Trade War Jitters

The Pound US Dollar (GBP/USD) exchange rate touched a four-month low yesterday, as the safe-haven ‘Greenback’ remained in demand as US-China trade relations continued to deteriorate.

This followed the news that Donald Trump had effectively banned Chinese telecoms giant Huawei from doing business with the US, something which threatens to escalate trade tensions even further.

Potentially drawing some attention away from the trade dispute today will be the release of the latest US consumer sentiment index, with an improvement in confidence this month possibly lifting the US Dollar.

GBP/CAD Exchange Rate Dented By Rising Oil Prices

The Pound Canadian Dollar (GBP/CAD) exchange rate slumped over half a cent on Thursday, as the oil-sensitive ‘Loonie’ found itself in vogue again as WTI crude leapt to $62 a barrel amidst tensions in the Middle East.

GBP/AUD Exchange Rate Rallies from Lows as RBA Rate Cut Odds Surge

After falling to a one-week low, the Pound Australian Dollar (GBP/AUD) exchange rate bounced back during the second half of Thursday’s session, with the ‘Aussie’ coming under pressure due to a mix of trade worries and rising speculation that the Reserve Bank of Australia (RBA) could slash interest rates as soon as next month.

GBP/NZD Exchange Rate Rebounds as Risk Sentiment Sinks

The Pound to New Zealand Dollar (GBP/NZD) exchange rate also reversed its losses in the afternoon on Thursday as trade war jitters weighed on market risk appetite.

Matthew Andrews

Contact Matthew Andrews