Pound Sterling (GBP) Flat Following Ramsden Comments
The Pound (GBP) remained in a narrow range throughout yesterday’s session, with Sterling unable to make much headway following comments from Bank of England (BoE) Deputy Governor Dave Ramsden.
Speaking in Scotland, Ramsden suggested that the bank’s growth forecasts from earlier in the month may have been overly optimistic as he suggested both investment and productivity would undershoot expectations this year.
Looking ahead, we can expect to see the focus shift back to UK politics, with the Pound likely to remain subdued as speculation over who will replace Theresa May as PM continues to limit the appeal of GBP.
GBP/EUR Exchange Rate Muted as Italy Debt Drama Returns
The Pound Euro (GBP/EUR) exchange rate was left trading sideways on Thursday as worries over a potential clash between the EU and Italy weighed on sentiment.
This follows the news that the EU sent a letter to Rome late on Wednesday seeking an explanation as to why Italy had flouted EU fiscal rules and allowed its substantial debt pile to grow last year.
Should Rome not provide an adequate response then it’s thought the EU will move ahead with punitive measures, reported to include a €3bn fine.
In focus for EUR investors today we have the release of Germany’s latest Consumer Price Index, which may dent the Euro if inflation is shown to have slowed again in May.
GBP/USD Exchange Rate Nears 2019 Low
The Pound US Dollar (GBP/USD) exchange rate threatened to fall to its lowest levels so far this year on Thursday as markets digested the latest US GDP estimate.
While growth was revised down to 3.1% from 3.2% in the initial estimate, this still pointed to a robust start to for the US economy in 2019, preventing USD from slipping against its peers.
Coming up today we have the release of the latest US PCE Price Index, with the US Dollar potentially finding some support if inflation rose in line with expectations in April.
GBP/CAD Exchange Rate Slides despite Oil Losses
The Pound Canadian Dollar (GBP/CAD) exchange rate fell around half a cent yesterday, despite global crude prices falling 1% through the session.
The ‘Loonie’ may look to extend these gains later today, when Canada’s GDP figures are expected to report a rebound in growth in the first quarter.
GBP/AUD Exchange Rate Steady on Soft Chinese Data
The Pound Australian Dollar (GBP/AUD) exchange rate stabilised overnight on Thursday, holding just above a one-month low as a slight contraction in China’s manufacturing sector this month dampened appetite for the ‘Aussie’.
GBP/NZD Exchange Rate Flat amidst Subdued Risk Appetite
The Pound to New Zealand Dollar (GBP/NZD) exchange rate traded in a similar manner to GBP/AUD on Thursday, with the pairing trading sideways overnight as weak Chinese data capped demand for the ‘Kiwi’.