Pound Sterling (GBP) Steady as UK GDP Rebounds
After a sharp drop on Tuesday, the Pound (GBP) was able to stabilise yesterday following the publication of the UK’s latest GDP report.
While the UK economy was reported to have returned to growth in May, there was only limited upside in Sterling as economists warned that this is unlikely to be enough to prevent the UK economy from contracting in the second quarter.
Looking ahead to today’s session, we could see the Pound slip back again if the Bank of England’s (BoE) financial stability report takes a more dovish view of the economy.
GBP/EUR Exchange Rate Flat as Eurozone 2020 Growth Revised Down
The Pound Euro (GBP/EUR) exchange rate remained mostly rangebound throughout Wednesday’s session after the European Commission released its summer economic forecast.
This dented the appeal of the single currency as the EC cut its Eurozone growth forecast for 2020 from 1.5% to 1.4%, as the bloc continues to face economic headwinds.
Coming up later this afternoon we have the release of the minutes from the European Central Bank’s (ECB) policy meeting in June, with the Euro likely to face some pressure if they reveal policymakers are in favour of more stimulus this year.
GBP/USD Exchange Rate Soars on Dovish Powell Comments
The Pound US Dollar (GBP/USD) exchange rate jumped on Wednesday as the ‘Greenback’ faced heavy selling following comments from Federal Reserve Chair Jerome Powell.
In a testimony to US Congress, Powell said that trade uncertainties and slowing global growth are weighing on the US economic outlook. This signalled to USD investors that a rate cut this month is highly likely.
The latest US CPI figures will be in the spotlight today, with the US Dollar potentially coming under additional pressure if headline inflation fell in June as expected.
GBP/CAD Exchange Rate Rallies Following BoC Rate Decision
The Pound Canadian Dollar (GBP/CAD) exchange rate trended higher yesterday, with the ‘Loonie’ unable to take advantage of a sharp upswing in oil prices after the Bank of Canada (BoC) left rates on hold again this month and offered no hints on its next policy move.
GBP/AUD Exchange Rate Steady as Trade Concerns Grow
After dipping on Wednesday afternoon, the Pound to Australian Dollar (GBP/AUD) exchange rate stabilised overnight, with the ‘Aussie’ unable to extend its gains amid pessimism in regards to US-China trade talks.
GBP/NZD Exchange Rate Slips on Fed Speculation
The Pound to New Zealand Dollar (GBP/NZD) exchange rate mostly followed the same path as GBP/AUD on Wednesday, with the ‘Kiwi’ jumping in the afternoon on the back of Powell’s dovish comments before stabilising overnight as risk appetite slipped.
10:30 GBP BoE Financial Stability Report
12:30 EUR ECB Minutes
13:30 USD Inflation Rate (Jun)