Pound Sterling (GBP) Weakened by Political Uncertainty
The Pound (GBP) closed out the end of last week’s session on the defensive once again as ongoing political uncertainty in the UK weighed on Sterling sentiment.
GBP investors are growing increasingly concerned by the Conservative leadership election as they fear Theresa May’s successor could push for a no-deal Brexit.
Looking ahead to this week’s session the focus will be on the Bank of England’s (BoE) June policy meeting, which could boost the Pound if it remains hawkish on the prospect of raising interest rates.
GBP/EUR Exchange Rate Slips on EU Budget Progress
The Pound Euro (GBP/EUR) exchange rate stumbled on Friday, with the single currency edging higher on the back of reports of positive progress being made in establishing a new Eurozone budget.
However while EUR investors welcomed the news that ‘small steps’ had been made, the question of how to deal with Italy and its sizable debt pile hung over the meeting of Eurozone finance ministers, capping the upside in the Euro.
Coming up today we have a speech by European Central Bank (ECB) President Mario Draghi, which could weigh on EUR exchange rates later this evening should he strike a dovish tone.
GBP/USD Exchange Rate Softens as US Retail Sales Impress
The Pound US Dollar (GBP/USD) exchange rate struck a new five-month low at the end of last week’s session as the ‘Greenback’ was bolstered by some upbeat domestic data.
This was mostly driven by the latest US retail sales which printed robustly last month after being revised up in April, with some strong industrial data further boosting the appeal of USD.
In focus for USD investors this week will be the Federal Reserve’s policy meeting on Wednesday in which markets will hope to learn more about the timing of an expected rate cut from the private central bank later in the week.
GBP/CAD Exchange Rate Dips as Oil Prices Climb
The Pound Canadian Dollar (GBP/CAD) exchange rate edged lower on Friday as the oil-sensitive ‘Loonie’ was offered support from another rise in crude prices when the US accused Iran of the recent tanker attacks in the Gulf of Oman.
GBP/AUD Exchange Rate Steady as Commodity Prices Strengthen
The Pound to Australian Dollar (GBP/AUD) exchange rate opens this week in a narrow range, with the ‘Aussie’ trading robustly as strong commodity prices offset ongoing concerns over the US-China trade dispute.
GBP/NZD Exchange Rate Slips as NZ Service PMI Beats Expectations
The Pound to New Zealand Dollar (GBP/NZD) exchange rate fell back at the start of this week’s session as the ‘Kiwi’ was lifted by the release of a stronger-than-expected domestic services PMI overnight on Sunday.