Pound Sterling (GBP) Subdued as Brexit Risks Rise
The Pound (GBP) found itself trading sideways against the majority of its peers on Wednesday as Sterling sentiment continued to be suppressed by the rising political uncertainty in the UK.
Analysts began to speculate that the likelihood of a no-deal Brexit is on the rise, as the odds of a Brexiteer PM pushing to leave the EU in October regardless of a deal continue to grow.
Potentially drawing attentions away from the Tory leadership race this morning will be a speech by the Bank of England’s (BoE) Dave Ramsden, who could offer some support to the Pound if he appears hawkish in regards to future rate hikes.
GBP/EUR Exchange Rate Buoyed by ECB Warning
The Pound Euro (GBP/EUR) exchange rate edged higher yesterday, as the single currency came under broad pressure following the publication of the European Central Bank’s (ECB) financial Stability Review.
This saw the bank warn that the Eurozone’s financial stability remains threatened by a global downturn and that more needs to be done to address ‘country-specific debt sustainability concerns’ – a likely jab at Italy.
Expect to see Italy remain in the crosshairs for EUR investors today as Matteo Salvini – buoyed his party’s strong showing in the EU elections – continues to push back against EU budget rules.
GBP/USD Exchange Rate Muted Amid Lingering Trade War Fears
The Pound US Dollar (GBP/USD) exchange rate traded just shy of a one-week low on Wednesday as persistent US-China trade tensions saw the safe-haven US currency continue to enjoy modest demand.
The latest escalation in tensions saw China threaten to restrict the export of rare earth minerals as Beijing looks for leverage in its ongoing trade dispute with the US.
Coming up later today we have the second estimate for US GDP in the first quarter, likely lending some support to the US Dollar if the data confirms the economy enjoyed a solid start to 2019.
GBP/CAD Exchange Rate Stable Following BoC Rate Decision
The Pound Canadian Dollar (GBP/CAD) exchange rate drifted higher yesterday following the Bank of Canada’s (BoC) latest policy meeting.
While the bank’s decision to leave interest rates on hold again came as little surprise to CAD investors, the oil-sensitive ‘Loonie’ found itself giving up ground following the meeting as investors turned their attention to Wednesday’s 2% slump in crude prices.
GBP/AUD Exchange Rate Slides despite Risk Aversion
The Pound Australian Dollar (GBP/AUD) exchange rate struck a fresh two-month low overnight on Wednesday as the ‘Aussie’ showed surprising resilience in spite of the risk-off mood that appeared to prevail in markets.
GBP/NZD Exchange Rate Gains on Gloomy NZ Inflation Outlook
The Pound to New Zealand Dollar (GBP/NZD) exchange rate accelerated around half a cent yesterday, with the ‘Kiwi’ coming under pressure after the latest ANZ business survey indicated that domestic inflation pressures began to recede in May.