Pound Sterling (GBP) Exchange Rates Slides as Retail Sales Fall at Fastest Pace in a Decade

Pound Sterling (GBP) Struggles as Retail Sales Slump to Decade Low

The Pound (GBP) made an abortive push higher yesterday morning, with the UK currency quickly relinquishing its early gains following the publication of the Confederation of British Industry’s distributive trade index.

The data revealed that UK retail sales contracted at their fastest pace in a decade this month, denting Sterling sentiment as it stoked concerns that the UK economy will have stagnated in the second quarter.

Coming up this morning we have the release of the UK’s latest mortgage figures, with a continued uptrend in mortgage approvals potentially lending some support to GBP exchange rates.

GBP/EUR Exchange Rate Steady on Dovish ECB Chatter

The Pound Euro (GBP/EUR) exchange rate was able to hold its ground on Tuesday as comments from European Central Bank (ECB) Vice President Luis De Guindos were largely interpreted as dovish.

Further dampening the appeal of the Euro were ongoing concerns over Italy, following reports that the country would be given just six months to reduce its debt pile.

The ECB is likely to remain in focus today thanks to a speech by policymaker Yves Mersch, with any additional dovish signals likely to limit the appeal of the Euro.

GBP/USD Exchange Rate Slides on Reduced Risk Appetite

The Pound US Dollar (GBP/USD) exchange rate fell back on Tuesday, with the ‘Greenback’ climbing throughout the session as safe-haven demand was buoyed by rising geopolitical tensions.

Also offering some support to USD exchange rates were comments from Federal Reserve Chair Jerome Powell as he assured markets the Fed is ‘insulated’ from political pressures, following growing criticism from President Trump over high interest rates.

Looking ahead, we may see the US Dollar dip later this afternoon as the latest US durable goods data is expected to report that orders continued to contract in May, although at a more modest pace than April.

GBP/CAD Exchange Rate Slips as Oil Prices Climb

The Pound Canadian Dollar (GBP/CAD) exchange rate struck a fresh weekly low yesterday as the oil-sensitive ‘Loonie’ accelerated following another upswing in crude prices driven by an escalation in tensions between the US and Iran.

GBP/AUD Exchange Rate Slides ahead of Trump-XI Meeting

The Pound to Australian Dollar (GBP/AUD) exchange rate fell around half a cent overnight on Tuesday, propelling the pairing to a three-week low as the ‘Aussie’ was lifted by trade optimism ahead of an expected meeting between US President Trump and his Chinese counterpart, XI Jinping at the G20 summit later this morning.

GBP/NZD Exchange Rate Down, RBNZ Upbeat on GDP

The Pound to New Zealand Dollar (GBP/NZD) exchange rate slumped to a four-month low overnight on Tuesday, following the Reserve Bank of New Zealand’s (RBNZ) latest policy meeting.

While the RBNZ signalled that further rate cuts may be necessary, the ‘Kiwi’ swung higher as it noted that ‘domestic GDP growth had held up more than projected in the March 2019 quarter’.

Data Releases

09:30 GBP Mortgage Approvals (May)

10:00 EUR ECB Mersch Speech

13:30 USD Durable Goods Orders (May)

Matthew Andrews

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