Pound Sterling (GBP) Exchange Rate Steady Following Johnson’s Statement
The Pound (GBP) was stable yesterday as Boris Johnson made his first statement to parliament as UK Prime Minister.
However, Sterling began to give up some ground in the evening after senior EU officials lambasted Johnson’s Brexit policy, with the EU’s chief Brexit negotiator Michel Barnier stating that removing the Irish backstop was unacceptable.
With the UK having exhausted its data for the week, the focus today will likely remain on UK political headlines as Johnson hopes to hit the ground running with his ambitious policy proposals.
GBP/EUR Exchange Rate Slips From Four-Week High on Draghi Comments
The Pound to Euro (GBP/EUR) exchange rate drifted lower on Thursday as the single currency enjoyed broad gains in the wake of the European Central Bank’s (ECB) latest policy meeting.
While the ECB’s forward guidance was dovish, the Euro swiftly recovered initial losses following Mario Draghi’s accompanying press conference, in which the ECB President suggested that there was no discussion of lowering rates this month.
In the absence of any other notable data this week we may see EUR exchange rates trade narrowly as markets continue to digest the ECB’s decision and what it may mean for the Euro in the months to come.
GBP/USD Exchange Rate Rangebound despite Rise in US Durable Orders
The Pound to US Dollar (GBP/USD) exchange rate remained mostly flat during yesterday’s European session in spite of data showing that US durable goods orders shot up 2% in June.
The muted reaction in USD was likely down to a revision in May’s reading which saw orders adjusted from -1.3% to -2.3%. The uptick in the Euro further limited appetite for the US Dollar.
In the spotlight for currency markets today will be the publication of the latest US GDP figures, with an expected slowdown in economic growth in the second quarter likely to see the US Dollar limp over the finishing line this week.
GBP/CAD Exchange Rate Steady as Oil Prices Accelerate
The Pound to Canadian Dollar (GBP/CAD) exchange rate remained steady throughout Thursday’s trading session, with the oil-sensitive ‘Loonie’ holding its ground thanks to an uptick in crude prices.
GBP/AUD Exchange Rate Steady amid RBA Rate Cut Speculation
The Pound Australian Dollar (GBP/AUD) exchange rate was able to hold steady overnight on Thursday, with the ‘Aussie’ unable to take advantage of the Sterling sell-off amid rising expectations that the Reserve Bank of Australia (RBA) will cut rates for a third time this year.
GBP/NZD Exchange Rate at Weekly High on Dovish RBNZ Expectations
The Pound to New Zealand Dollar (GBP/NZD) exchange rate struck a fresh one-week high on Thursday, with the ‘Kiwi’ giving ground as the prospect of another rate cut from the Reserve Bank of New Zealand (RBNZ) next month spooked some NZD investors.