Pound Sterling (GBP) Stabilises Following Upbeat Employment Report
The Pound (GBP) was buoyed on Tuesday as GBP investors cheered the release of the UK’s latest employment figures after domestic wage growth came in stronger than expected in April.
The surprise uptick in wages at the start of the second quarter helped to mitigate some of the concerns over Monday’s gloomy GDP figures and lifted Sterling sentiment on hopes it will increase the chances of the Bank of England (BoE) raising rates in the case of an orderly Brexit.
Looking ahead, the Pound may struggle to find momentum throughout the second half of this week’s session as the UK faces elevated political uncertainty due to the Conservative leadership contest.
GBP/EUR Exchange Rate Gains as Eurozone Sentiment Weakens
The Pound Euro (GBP/EUR) exchange rate backed away from a four-month low yesterday, with single currency being undermined by the Eurozone’s latest Sentix Investor Confidence Index.
The index revealed confidence in the bloc fell sharply in June, plummeting from 5.3 to -3.3 amidst worries over deteriorating global trade and a slowdown in Germany.
Meanwhile, EUR investors are likely to focus on a speech by European Central Bank (ECB) President Mario Draghi later today as they seek confirmation on reports that some policymakers are considering lowering interest rates if Eurozone growth continues to slow.
GBP/USD Exchange Rate Strengthens Following Trump Tweets
The Pound US Dollar (GBP/USD) exchange rate pushed higher on Tuesday, with the ‘Greenback’ struggling to holds its ground following another round of tweets from Donald Trump criticising the Federal Reserve.
Trump once again took aim at the Fed’s monetary policy as he suggested that interest rates are too high and that it is putting the US at a disadvantage against other countries.
This is because the Euro and other currencies are devalued against the dollar, putting the U.S. at a big disadvantage. The Fed Interest rate way too high, added to ridiculous quantitative tightening! They don’t have a clue! https://t.co/0CpnUzJqB9
— Donald J. Trump (@realDonaldTrump) June 11, 2019
In the spotlight today will be the latest US CPI report, with an expected fall in inflation likely to drag on the US Dollar later this afternoon as it increases the pressure on the Federal Reserve to lower interest rates this year.
GBP/CAD Exchange Rate Steady as Oil Prices Firm
The Pound Canadian Dollar (GBP/CAD) exchange rate was mostly rangebound throughout yesterday’s session, with the oil-sensitive ‘Loonie’ able to fend off Sterling’s advances as crude prices edged higher on hopes of more stimulus in China, which would help to increase global demand.
GBP/AUD Exchange Rate Climbs on Weak Chinese PPI Figures
The Pound to Australian Dollar (GBP/AUD) exchange rate struck a two-week high overnight on Tuesday, with the ‘Aussie’ remaining under pressure due to a mix of ongoing global trade tensions and a slide in China’s Producer Price Index in May.
Looking ahead, the Australian Dollar may accelerate overnight as economists forecast Australia’s unemployment rate will have fallen in May.
GBP/NZD Exchange Rate Rallies on NZ Animal Export Plans
The Pound to New Zealand Dollar (GBP/NZD) exchange rate leapt over a cent on Tuesday, before continuing to trend higher overnight as the commodity-linked ‘Kiwi’ was dented by the New Zealand government’s plan to restrict live animal exports.