Pound Sterling (GBP) Firms But Political Uncertainty Remains
The Pound (GBP) was buoyed at the end of last week’s session as the currency’s recent losses pushed it toward oversold territory, prompting a mini rebound.
However the upside in Sterling was capped by political uncertainty as Boris Johnson refused to rule out the option of proroguing parliament in order to push through a no-deal Brexit.
Coming up this morning we have the publication of the UK’s latest manufacturing PMI, which could help to buoy the Pound if growth in the sector rebounded in June as forecast.
GBP/EUR Exchange Rate Steady as Eurozone Inflation Improves
The Pound Euro (GBP/EUR) exchange rate remained in a narrow range on Friday, following the publication of the Eurozone’s latest CPI figures.
While EUR investors were pleased to hear that core inflation accelerated faster than expected in May, the single currency’s upside potential was limited as analysts suggested this was unlikely to deter the European Central Bank (ECB) from lowering rates this year.
In focus for EUR investors today will be the release of the Eurozone employment figures, with the Euro likely to strengthen if the recent downtrend in unemployment persisted in May.
GBP/USD Exchange Rate Gains as PCE Price Index Fails to Shift July Rate Cut Expectations
The Pound US Dollar (GBP/USD) exchange rate edged higher on Friday following the publication of the latest PCE Price Index.
The ‘Greenback’ weakened as the Federal Reserve’s preferred indicator for inflation remained well below the bank’s 2% target, stoking expectations that the Fed will target a rate cut this month.
Looking ahead, the US Dollar could come under pressure this afternoon following the publication of the ISM manufacturing index, with economists forecasting that the US factory sector will have slowed last month.
GBP/CAD Exchange Rate Buoyed as Canadian GDP Slows
The Pound Canadian Dollar (GBP/CAD) exchange rate stabilised at the end of last week’s session after Canada’s latest GDP figures confirmed that domestic growth slowed in April, albeit at a more modest pace than expected.
GBP/AUD Exchange Rate Rallies on Gloomy Chinese Data
After a muted end to last week’s session, the Pound to Australian Dollar (GBP/AUD) exchange rate is off to a strong start this week as AUD was undermined by some disappointing Chinese manufacturing figures.
The ‘Aussie’ is likely to face some further pressure later tonight as well if the Reserve Bank of Australia (RBA) signals that further rate hikes may be possible this year following the conclusion of its July policy meeting.
GBP/NZD Exchange Rate Climbs on Weak Chinese Factory PMI
The Pound to New Zealand Dollar (GBP/NZD) exchange rate moved away from Friday’s six-month low as the ‘Kiwi’ was undermined by gloomy Chinese manufacturing data.