Pound Sterling (GBP) Slips as Brexit Party Enjoys Strong Support
The end of last week saw the Pound (GBP) drift higher against the majority of its peers, with the resignation of Theresa May helping to end weeks of speculation over her future.
However the start of this week saw Sterling fall back again as the appeal of the UK currency was dampened by the Brexit party’s strong showing in the EU elections.
In the absence of any notable UK economic data this week, expect to see the Pound remain highly sensitive to political developments as the race to replace Theresa May begins in earnest.
GBP/EUR Exchange Rate Mixed Following EU Elections
The Pound Euro (GBP/EUR) exchange rate fluctuated at the start of this week as markets digested the results of the European parliamentary elections.
This comes after pro-EU parties were able to keep hold of a majority, albeit one fragmented by advances made by nationalist and Eurosceptic parties, which will likely complicate efforts to push through EU reforms.
Looking ahead, the focus for EUR investors today is likely to be on the meeting of EU leaders taking place in Brussels today, where they will discuss potential candidates for a number of top EU positions opening up later in the year.
GBP/USD Exchange Rate Dips on Trump Comments
The Pound US Dollar (GBP/USD) exchange rate weakened on Monday as the safe-haven US currency was bolstered by comments from Donald Trump regarding his tariffs against China.
The US president escalated his war of words with Beijing at the start of the week as he warned that tariffs on Chinese goods ‘could go up very, very substantially, very easily’.
Coming up later in the week we have the release of the second estimate of US GDP in the first quarter, which could help to buoy the US Dollar if it confirms US growth remained robust at the start of 2019.
GBP/CAD Exchange Rate Slips as Oil Prices Climb
The Pound Canadian Dollar (GBP/CAD) exchange rate fell back yesterday, with the oil-sensitive ‘Loonie’ creeping higher as crude prices were buoyed by reports of restricted Russian oil output.
GBP/AUD Exchange Rate Flat Amid Thin Trade
The Pound Australian Dollar (GBP/AUD) exchange rate was left adrift at the start of this week’s session, with the ‘Aussie’ finding limited support as traders await a fresh catalyst for movement amid thin trade in currency markets.
GBP/NZD Exchange Rate Subdued as Markets Quiet
The Pound to New Zealand Dollar (GBP/NZD) exchange rate was also stuck in a narrow range on Monday as the closure of UK and US markets led to a quiet session at the start of the week.