Pound Sterling (GBP) Muted as Tory Leadership Race Continues
The Pound (GBP) was mostly subdued at the start of this week’s session as the Conservative leadership contest rolled on with most candidates attending press gallery hustings as they made their case to replace Theresa May as Prime Minister.
One notable absence however was frontrunner Boris Johnson, whose bid to become Tory leader was given another boost on Monday after failed candidate Matt Hancock gave him his endorsement.
GBP investors are likely to remain focused on the Tory leadership race during today’s session as the second ballot takes place this evening.
GBP/EUR Exchange Rate Slides on Robust Wage Growth
The Pound Euro (GBP/EUR) exchange rate was left on the defensive throughout Monday’s session as EUR investors welcomed the latest Eurozone wage figures.
According to data published by Eurostat, wage growth in the bloc rose from 2.3% to 2.5% in the first quarter, the strongest rise in nearly a decade.
However the Euro may be forced to relinquish these gains later this morning, with the release of the latest ZEW economic index expected to show that sentiment in the Eurozone continued to deteriorate in June.
GBP/USD Exchange Rate Steady as US Data Disappoints
The Pound US Dollar (GBP/USD) exchange rate held steady at the start of this week’s session after the release of some gloomy US economic data.
The Empire State Manufacturing Index plummeted from 17.8 to -8.6 in June according to the Federal Reserve. This was the worst reading since 2016 and prevented the ‘Greenback’ from maintaining the upwards momentum seen at the end of last week’s session.
Outside of any surprises in US-China trade talks, expect to see the US Dollar remain mostly rangebound during today’s session as USD investors await the conclusion of the Federal Reserve’s latest policy meeting on Wednesday.
GBP/CAD Exchange Rate Steady Following Slip in Oil Prices
The Pound Canadian Dollar (GBP/CAD) exchange rate was rangebound over yesterday’s session with the oil-sensitive ‘Loonie’ struggling to find momentum as crude prices began to slip, giving up some of the gains made last session.
GBP/AUD Exchange Rate Rallies as RBA Minutes Point to Further Rate Cuts
The Pound to Australian Dollar (GBP/AUD) exchange rate climbed around half a cent overnight on Monday as the minutes from the Reserve Bank of Australia’s (RBA) June policy meeting revealed that it is ‘more likely than not’ that rates will be cut again in the period ahead.
GBP/NZD Exchange Rate Flat as NZ Service Growth Accelerates
The Pound to New Zealand Dollar (GBP/NZD) exchange rate was steady at the start of this week’s session NZD investors welcomed a surprise upswing in New Zealand’s latest services PMI.