Pound Sterling (GBP) Weakened by Gloomy Manufacturing PMI
The Pound (GBP) got off to a poor start this week as GBP investors were left dismayed by the UK’s latest Manufacturing PMI.
IHS Markit reported that UK factory growth continued to contract last month, striking its worst levels since February 2013 as the unwinding of Brexit stockpiles continued to limit demand.
Coming up today we have the UK’s construction PMI, which could prompt a further slide in Sterling if the construction sector suffered another slump in June as forecast.
GBP/EUR Exchange Rate Flat Amid EU Indecision
The Pound Euro (GBP/EUR) exchange rate remained broadly flat throughout Monday’s session as the appeal of the single currency was dented by a continued impasse within the EU over who to name as the new European Commission President.
In terms of data, a potential lift in EUR exchange rates thanks to a surprise fall in Eurozone unemployment in May was scuppered by a downwardly revised manufacturing PMI for June.
Meanwhile, the Euro may continue to struggle following the publication of Germany’s retail sales figures, which showed sales growth continued to contract in May.
GBP/USD Exchange Rate Slumps on Robust US Manufacturing Figures
The Pound US Dollar (GBP/USD) exchange rate fell by around half a cent yesterday as USD investors welcomed the publication of the latest ISM manufacturing PMI.
This showed that US factory output was more robust than forecast in June, with the US manufacturing sector avoiding the contractions seen in the UK and Eurozone.
Today we have a speech by the Federal Reserve’s John Williams, with the US Dollar potentially climbing if the policymaker is positive regarding the US-China trade truce and its impact on the US economy.
GBP/CAD Exchange Rate Slips to One-Year Low on Rising Oil Prices
The Pound Canadian Dollar (GBP/CAD) exchange rate sunk to a one-year low yesterday as demand for the oil-sensitive ‘Loonie’ was underpinned by the continued rally in Crude prices, with WTI oil rising as much as 3% on reports OPEC will extend supply cuts until at least the end of 2019.
GBP/AUD Exchange Rate Sinks Despite RBA Rate Cut
The Pound to Australian Dollar (GBP/AUD) exchange rate retreated overnight on Monday, with markets shrugging off a rate cut from the Reserve Bank of Australia (RBA). The rate cut had already been priced in, allowing the ‘Aussie’ to rally on a policy statement that seemed to suggest further cuts are unlikely.
GBP/NZD Exchange Rate Steady as NZ Business Confidence Slumps
The Pound to New Zealand Dollar (GBP/NZD) exchange rate consolidated its gains overnight on Monday as investors were disappointed to learn that business confidence continued to deteriorate in the second quarter.
Looking ahead, we may see the ‘Kiwi’ remain under pressure later this afternoon if prices continue to fall at the latest global dairy auction.