Pound Sterling (GBP) Steady as Johnson says he wants to avoid a No-deal Brexit
The Pound (GBP) maintained Tuesday’s momentum during yesterday’s session, with the UK currency drifting higher as prospective PM frontrunner Boris Johnson launched his leadership campaign.
This saw Sterling sentiment improve as Johnson said he was ‘not aiming for a no-deal Brexit’, although the upside in GBP was capped by his accompanying statement that the UK must leave the EU in October whatever the outcome.
Expect to see the Pound remain highly sensitive to political developments in the UK today as the first ballot in the leadership race takes place later in the session.
GBP/EUR Exchange Rate Buoyed by Draghi Comments
The Pound Euro (GBP/EUR) exchange rate continued to accelerate on Wednesday, with the single currency facing some pressure following comments from European Central Bank (ECB) President Mario Draghi.
Speaking at the start of the ECB’s conference on Central, Eastern, and South-Eastern European countries, Draghi warned of the headwinds facing global trade, casting further gloom over the Eurozone economy.
Coming up today we have the release of the Eurozone’s latest industrial production figures, with the Euro likely to soften following their release as economists forecast the slowdown in factory output will have accelerated in April.
GBP/USD Exchange Rate Dips despite Slowing US Inflation
The Pound US Dollar (GBP/USD) exchange rate fell back yesterday, with the ‘Greenback’ bouncing back from some initial losses despite domestic inflation slowing faster than expected in May.
This rally in the US Dollar appeared to be a result of it entering oversold territory, given that analysts believe that a rate cut from the Federal Reserve later this year is already priced in.
Looking ahead, in the absence of any notable domestic data, the US Dollar may remain buoyed as ongoing US-China trade tensions result in robust safe-haven demand from markets.
GBP/CAD Exchange Rate Accelerates as Oil Prices Slump
The Pound Canadian Dollar (GBP/CAD) exchange rate ticked higher on Wednesday as the oil-sensitive ‘Loonie’ struggled to hold its ground after crude prices slumped over 2% amidst concerns of slowing global demand and a surprising gain in US crude stocks.
GBP/AUD Exchange Rate Rallies on Mixed Australian Labour Figures
The Pound to Australian Dollar (GBP/AUD) exchange rate jumped to a fresh two-week high overnight on Wednesday, with the ‘Aussie’ coming under pressure from the release of Australia’s latest employment figures.
While the data printed fairly robustly, with employment growth remaining more resilient than expected in May, AUD investors suggested it may not be enough to prevent the Reserve Bank of Australia from lowering rates again this year.
GBP/NZD Exchange Rate Slips from Two-Week High
The Pound to New Zealand Dollar (GBP/NZD) exchange rate fell back from a two-week high yesterday evening as the weakened ‘Kiwi’ attracted investors seeking a bargain.