Pound Sterling (GBP) Stable Following Services PMI
The Pound (GBP) was steady against the majority of its peers yesterday as GBP traders expressed relief that the UK services sector was able to avoid the contraction seen in the manufacturing and construction sectors last month.
However any upside in Sterling was limited as analysts suggested the modest expansion in services was not enough to offset the slowdown elsewhere in the UK and that second quarter growth is on track to stagnate.
Coming up today we have a speech by Bank of England (BoE) Governor Mark Carney, which could weaken GBP exchange rates if recent evidence of a sustained global slowdown leads to a more cautious outlook on monetary policy.
GBP/EUR Exchange Rate Flat as EC Threatens Italy with Disciplinary Measures
Trade in the Pound Euro (GBP/EUR) exchange rate was robust on Wednesday as markets reacted to reports that the European Commission was recommending disciplinary measures against Italy over its refusal to comply with EU debt rules.
While no punitive measures have been implemented just yet, the EC’s recommendation begins the procedure by which sanctions could be placed on Italy.
Meanwhile, in the spotlight today will be the conclusion of the European Central Bank’s latest policy meeting, which could see the single currency stumble if the bank seeks to delay its long-awaited rate hike even further as growth in the Eurozone slows to a crawl.
GBP/USD Exchange Rate Buoyed as US Employment Growth Nosedives
The Pound US Dollar (GBP/USD) exchange rate briefly climbed to a one week high yesterday after a shock slump in US employment growth stoked speculation the Federal Reserve will cut interest rates later this year.
However the ‘Greenback’ was able to claw back some of these losses later in the afternoon after the ISM non-manufacturing PMI revealed growth in the US service sector was more robust than thought in May.
Looking ahead, the release of the US trade balance figures could impact the US Dollar later today as another rise in the trade deficit is likely to feed into Trump’s hardline stance of trade.
GBP/CAD Exchange Rate Stable as Oil Continues to Retreat
The Pound Canadian Dollar (GBP/CAD) exchange rate held its ground on Wednesday and the oil-sensitive ‘Loonie’ struggled to find momentum due to another slide in oil prices as well as ongoing concerns over US tariffs against Mexico.
GBP/AUD Exchange Rate Flat on Robust Australian Trade Figures
After accelerating during the European session on Wednesday, the Pound Australian Dollar (GBP/AUD) exchange rate ran out of steam overnight as the ‘Aussie’ found support as Australia’s trade surplus held near record high in April.
GBP/NZD Exchange Rate Steady as USD Weakens
The Pound to New Zealand Dollar (GBP/NZD) exchange rate briefly ticked upwards yesterday before quickly relinquishing its gains later in the evening as the ‘Kiwi’ rode higher on the back of improved risk appetite following the slump in the US Dollar.