Pound Sterling (GBP) Steady as Race for Conservative Leadership Gets Underway
The Pound (GBP) remained largely rangebound yesterday, with GBP investors remaining wary of the UK currency as a number of Conservative leadership candidates launched their campaigns to replace Theresa May as PM.
However, helping to offset the subsequent rise in political uncertainty was the release of the UK’s latest mortgage figures, with home loan approvals rising to a two-year high in April.
Expect to see Sterling remain politically sensitive for the rest of the week, potentially resulting in some GBP volatility as Tory leadership speculation heats up.
GBP/EUR Exchange Rate Muted as Italy Fears Resurface
The Pound Euro (GBP/EUR) exchange rate was left to trade in a narrow range on Tuesday amidst fears that a strong performance by the Italian League party in the EU elections will lend greater political clout to Deputy Prime Minister Matteo Salvini.
Markets worry this will put Rome on a collision course with Brussels once again as Salvini likely pushes harder for changes to EU budget rules.
Meanwhile, we may see the Euro find support today following the release of Germany’s latest employment figures earlier this morning, which showed unemployment in the country remained at a 39-year low in April.
GBP/USD Exchange Rate Rangebound amidst Lull in US Data
The Pound US Dollar (GBP/USD) exchange rate showed only limited movement on Tuesday, with a lull in notable US data leaving USD a little directionless.
While markets were broadly risk averse yesterday, the US Dollar failed to capitalise as trade in the currency remained thin following the US holiday at the start of the week.
This trend may persist throughout today’s session as well, with the continued absence of any US data leaving the US Dollar without any fresh catalyst for movement.
GBP/CAD Exchange Rate to Weaken on Hawkish BoC Outlook?
The Pound Canadian Dollar (GBP/CAD) exchange rate drifted higher yesterday as a modest fall in oil prices and a general sense of risk aversion in markets limited the appeal of the ‘Loonie’
In focus today will be the Bank of Canada’s (BoC) latest rate decision, which could lend some support to CAD exchange rates if the bank retains its mildly hawkish outlook.
GBP/AUD Exchange Rate Sinks to Five-Week Low
The Pound Australian Dollar (GBP/AUD) exchange rate edged down to a fresh five-week low overnight on Tuesday, as the ‘Aussie’ was buoyed by an uptick in commodity prices.
GBP/NZD Exchange Rate Flat Following RBNZ Stability Review
The Pound to New Zealand Dollar (GBP/NZD) exchange rate remained unfazed by the Reserve Bank of New Zealand’s (RBNZ) stability review overnight on Tuesday, as RBNZ Governor Adrian Orr refrained from talking about the bank’s monetary policy.