Pound Sterling (GBP) Mixed as Brexit Fears Rise
The Pound (GBP) found itself trading sideways against most of its peers yesterday, with investors reluctant to go near the UK currency as political jitters rose.
Markets are growing concerned that the odds of a no-deal Brexit are on the rise once again as hardline Brexiteers take an early lead in the Conservative leadership contest.
Expect to see GBP investors become even more skittish today as well, when the race officially begins after Theresa May steps down as Tory leader later today.
GBP/EUR Exchange Rate Dips on ECB Mixed Message
The Pound Euro (GBP/EUR) exchange rate drifted lower on Thursday as markets reacted to the European Central Bank’s (ECB) latest policy decision.
While no policy changes were made this month, the ECB offered some fleeting support to the Euro as it revised up its inflation forecast for 2019, before undermining this by indicating that its next rate hike would later be delayed until at least the second half of 2020.
Meanwhile, the single currency looks to be on the back foot again today after data published this morning revealed that German industrial production slumped more than expected in April.
GBP/USD Exchange Rate to Rise if Payrolls Fall?
The Pound US Dollar (GBP/USD) exchange rate pressed higher yesterday as demand for the ‘Greenback’ was stifled by growing speculation that the Federal Reserve will cut interest rates in the coming months.
The downtrend in USD may continue today with the release of the latest US payroll report, which could see the US Dollar tumble if payrolls collapsed in May as hinted at with the release of the ADP employment report earlier in the week.
Such a fall would likely further fuel concerns of a rate cut from the Fed this year and could place considerable pressure on the US Dollar.
GBP/CAD Exchange Rate Subdued on Strong Canadian Trade Figures
The Pound Canadian Dollar (GBP/CAD) exchange rate edged lower on Thursday, with the ‘Loonie’ shrugging off another drop in oil prices after Canada reported a sizable jump in exports.
The Canadian Dollar looks likely to relinquish some of its gains later today however with the publication of Canada’s own labour figures, expected to show employment growth fell off sharply last month.
GBP/AUD Exchange Rate Steady as Iron Ore Prices Dip
The Pound Australian Dollar (GBP/AUD) exchange rate was mostly rangebound overnight on Thursday, with any upside in the ‘Aussie’ following the slump in the US Dollar fizzling in the face of falling iron ore prices.
GBP/NZD Exchange Rate Muted Despite Improved Risk Appetite
The Pound to New Zealand Dollar (GBP/NZD) exchange rate was also stuck in a narrow range throughout yesterday’s session, with the ‘Kiwi’ struggling to take advantage of an upswing in risk appetite amidst a fall in commodity prices.