Pound Sterling (GBP) Exchange Rate Rallies as UK Retail Sales Surge
After suffering during the first half of the week, Pound Sterling (GBP) exchange rates found some much needed relief yesterday thanks to a shock rally in retail sales in June, which bolstered hopes the UK will have avoided contraction in the second quarter.
The rally in Sterling also came in spite of warnings from the Office for Budget Responsibility (OBR) that a no-deal Brexit could cost the UK economy £30bn and lead to a recession.
Coming up this morning we have the release of the UK’s latest borrowing figures, where a narrowing of the public deficit last month may help the Pound consolidate its gains.
ECB Speculation Aids Recovery in GBP/EUR Exchange Rate
The Pound to Euro (GBP/EUR) exchange rate shot higher on Thursday, with the pairing rallying from a seven-month low as the single currency broadly weakened.
The muted EUR performance appeared to be a result of stimulus expectations from the European Central Bank (ECB), with analysts suggesting that rate cuts will be the preferred instrument for easing.
Looking ahead, the Euro is likely to continue to struggle to find momentum today after German producer prices contracted faster-than-expected in June.
GBP/USD Exchange Rate Soars on Dovish Fed Speak
The Pound to US Dollar (GBP/USD) exchange rate closed yesterday’s session up by around a cent following some dovish comments from the Federal Reserve’s John Williams.
Williams stoked speculation of aggressive rate cuts from the bank this year after he suggested that the Fed needs to ‘act quickly’ to tackle slowing growth.
Closing out this week’s session will be the publication of the latest US consumer sentiment index, with the US Dollar potentially facing some pressure if sentiment deteriorated in July as forecast.
GBP/CAD Exchange Rate Surges as Oil Prices Slump
The Pound to Canadian Dollar (GBP/CAD) exchange rate climbed over half a cent on Thursday, with the oil-sensitive ‘Loonie’ unable to hold off a resurgent Sterling as Brent crude fell to $63 a barrel.
However, potentially buoying the Canadian Dollar later this afternoon will be the publication of Canada’s latest retail sales figures as economists forecast a modest acceleration in sales growth in May.
GBP/AUD Exchange Rate Subdued as Markets Remain Wary of US-China Trade Talks
The Pound to Australian Dollar (GBP/AUD) exchange rate held steady overnight on Thursday, with the ‘Aussie’ struggling to find momentum as market risk sentiment remained weak in the face of US-China trade concerns.
GBP/NZD Exchange Rate Flat on Muted Risk Appetite
The Pound to New Zealand Dollar (GBP/NZD) exchange rate also traded in a narrow range last night, as sliding risk appetite dampened the appeal of the ‘Kiwi’.