Pound Sterling (GBP) Exchange Rates Shrug Off Vlieghe Brexit Warning
The Pound (GBP) edged higher at the end of last week as GBP investors largely ignored a Brexit warning from the Bank of England’s Gertjan Vlieghe.
Vlieghe warned that the BoE may need to cut rates ‘close to 0%’ in the event of a no-deal Brexit and intimated that borrowing costs would probably remain that low for some time.
Looking ahead, the focus for GBP investors this week will be on the UK’s latest employment figures, with another drop in wage growth likely to weigh on Sterling.
GBP/EUR Exchange Rate Firms despite Upbeat Eurozone Data
The Pound to Euro (GBP/EUR) exchange rate crept higher on Friday, with the single currency facing broad losses at the end of the week as the European Central Bank’s François Villeroy de Galhau added to calls for the ECB to inject stimulus into the Eurozone.
The slide in the Euro also came in spite of the Eurozone’s latest industrial production figures beating expectations, with production growing by 0.9% in May against expectations of a more modest 0.1% expansion.
Expect to see the Euro remain on the back foot through the first half of this week’s session if Eurozone economic sentiment remains gloomy in July as expected.
GBP/USD Exchange Rate Gains Tempered as US PPI Figures Beat Expectations
While the Pound to US Dollar (GBP/USD) exchange rate trended higher at the end of last week’s session, the pairing’s gains were tempered somewhat after US PPI figures came in above expectations.
Also lending some support to the US Dollar on Friday were the rising trade tensions between the US and China, which helped buoy demand for the safe-haven currency.
The focus for USD investors this week is likely to be the latest US retail sales figures on Tuesday, with the US Dollar potentially sliding if sales growth weakened in June as forecast.
GBP/CAD Exchange Rate Steady as Oil Prices Hold at $67 a Barrel
The Pound to Canadian Dollar (GBP/CAD) exchange rate was left flat at the end of last week’s session, with the oil-sensitive ‘Loonie’ holding its ground as Brent crude remained close to a six-week high.
GBP/AUD Exchange Rate Slumps on Upbeat Chinese Data
After slipping on Friday, the Pound to Australian Dollar (GBP/AUD) exchange rate remains on the defensive at the start of this week’s session following a run of Chinese data.
Whilst Chinese GDP struck a 27-year low in the second quarter, AUD investors chose to focus on the accompanying industrial production and retail sales figures, which both surpassed expectations in June.
GBP/NZD Exchange Rate Strikes Six-Month Low as Risk Sentiment Improves
The Pound to New Zealand Dollar (GBP/NZD) exchange rate also tumbled at the start of this week’s session, with the pairing striking a six-month low as NZD investors welcomed the latest economic data from China.
Coming up later this evening we have the publication of New Zealand’s latest CPI figures, which could give the ‘Kiwi’ a boost if inflation accelerated in the second quarter as expected.