Pound Sterling (GBP) Stable as Boris Johnson Secures Lead in Tory Leadership Race
The Pound (GBP) held steady on Thursday as the first round of voting in the Conservative leadership saw Boris Johnson take a convincing lead in the race with 114 votes.
While a Johnson premiership may not necessarily be the preferred outcome for GBP investors, Sterling sentiment appeared to be lifted by the prospect of a one-horse race helping to temper the political uncertainty in the UK.
Potentially offering the Pound some respite from the Tory leadership race today will be a speech by Bank of England‘s (BoE) Mark Carney later this afternoon, with Sterling potentially slipping if an increasingly gloomy global outlooks results in the BoE governor adopting a more dovish tone.
GBP/EUR Exchange Rate Firms Following Weak Eurozone Industrial Figures
The Pound Euro (GBP/EUR) exchange rate was buoyed yesterday following the release of the Eurozone’s latest industrial production figures.
Data published by Eurostat reported that factory output in the bloc declined by -0.5% in April, following on from a -0.4% contraction in March, stoking concerns of a prolonged industrial slowdown in the bloc.
In the absence of any notable Eurozone data today, movement in the Euro may remain subdued as an increasingly gloomy outlook for the bloc drags on EUR sentiment.
GBP/USD Exchange Rate Muted Amidst Rise in Geopolitical Uncertainty
The Pound US Dollar (GBP/USD) exchange rate struggled to find any momentum on Thursday as the safe-haven ‘Greenback’ found itself in demand amidst a rise in global geopolitical uncertainty.
Adding to the uncertainty surrounding US-China trade tensions were attacks on two oil tankers in the Gulf of Oman as well as the clashes between police and protestors in Hong Kong.
Expect to see the US Dollar remain in demand today as well, with US economic data expected to report a rebound in domestic retail sales and industrial production in May.
GBP/CAD Exchange Rate Slips as Oil prices Surge
The Pound Canadian Dollar (GBP/CAD) exchange rate edged lower during yesterday’s session as the oil-sensitive ‘Loonie’ was boosted after crude prices rallied over 3% from a five-month low amidst supply concerns stemming from the attacks in the Gulf of Oman.
GBP/AUD Exchange Rate falls as Chinese Industrial Production Disappoints
The Pound to Australian Dollar (GBP/AUD) exchange rate rose overnight following some weak Chinese data that had the effect of reducing risk sentiment.
Chinese industrial production slipped in May, falling to 5% from 5.4% in April, adding to concerns of a slowdown in the economy and causing investors to pull out of the trade-sensitive ‘Aussie’.
GBP/NZD Exchange Rate Rises on Geopolitical Worries
The Pound to New Zealand Dollar (GBP/NZD) exchange rate was similarly impacted by the weaker-than-expected Chinese data, as well as by wider geopolitical concerns.
Added to this, the Business NZ PMI figures revealed a fall to 50.2 – down sharply from the previous month’s more robust 52.7.