Pound Sterling (GBP) Exchange Rates Battered by Brexit Anxieties
Pound Sterling (GBP) exchange rates collapsed yesterday, with the UK currency recording broad losses on the back of rising no-deal Brexit risks after both PM candidates spoke out strongly against the Irish backstop.
This resulted in GBP investors largely shrugging off yesterday’s employment figures, despite wage growth climbing to a new decade high and unemployment holding at a 44-year low.
The continued Brexit malaise may leave Sterling on the back foot through today’s session as well, with a robust UK inflation reading unlikely to deter further selling.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Losses Trimmed by Eurozone Gloom
The Pound to Euro (GBP/EUR) exchange rate struck a fresh 6-month low yesterday, but was prevented from sliding any further by the release of the Eurozone’s latest economic sentiment index.
According to ZEW’s latest survey, sentiment in the Eurozone continued to deteriorate this month, with trade concerns and signs of slowing global growth resulting in the gloomiest reading since January.
Coming up today we have the final release of the Eurozone’s CPI figures from June, where an expected rally in core inflation could offer some support to the Euro.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Plunges as US Retail Sales Impress
The Pound to US Dollar (GBP/USD) exchange rate plummeted almost a cent to strike a new 27-month low on Tuesday.
Whilst this was mostly down to the sharp sell-off in Sterling, the ‘Greenback’ was able to extend its gains after domestic retail sales printed more robustly than expected in June.
However, in the absence of any notable data today, we may see the US Dollar relinquish some ground as investors continue to position themselves ahead of an expected rate cut from the Federal Reserve later this month.
Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Plummets on Resilient Oil Prices
The Pound to Canadian Dollar (GBP/CAD) exchange rate recorded a sharp loss yesterday, with the pairing tumbling over a cent as the oil-sensitive ‘Loonie’ was bolstered by the continued rally in crude prices.
Coming up later this afternoon we have the publication of Canada’s CPI figures, with CAD exchange rates potentially moving lower if domestic inflation slowed in line with expectations last month.
Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Rallies as Iron Ore Futures Slide
After falling over a cent during the European session on Tuesday, the Pound to Australian Dollar (GBP/AUD) exchange rate was able to claw back some losses overnight as the appeal of the ‘Aussie’ was dented by a drop in Chinese iron ore futures.
Looking ahead, we may see the Australian Dollar move lower later tonight if the domestic labour figures fail to impress.
Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Stabilises as Risk Sentiment Softens
The Pound to New Zealand Dollar (GBP/NZD) exchange rate also fell sharply during yesterday’s session before stabilising in the evening as a stronger US Dollar weakened market risk appetite.