Pound Sterling (GBP) Flat Following Weak Construction PMI
The Pound (GBP) closed last week’s session on steady footing, holding its ground in spite of another gloomy construction PMI.
IHS Markit reported that growth in the UK’s construction sector suffered its third consecutive contraction in July as Brexit uncertainty continued to limit investment in the UK.
However, the Pound has recorded steep losses against the Euro and US Dollar this morning despite the UK’s Services PMI exceeding forecasts.
GBP/EUR Exchange Rate Dips on Impressive Eurozone Retail Sales
The Pound to Euro (GBP/EUR) exchange rate drifted lower on Friday as EUR investors cheered the release of the latest Eurozone retail sales data.
The report revealed that sales growth roared back to life in June, surging from -0.6% to 1.1% and sailing past expectations of a modest 0.2% rebound.
Coming up this morning is the publication of the Eurozone’s latest PMI figures, which are expected to confirm a modest slowing of growth in the bloc’s private sector last month.
GBP/USD Exchange Rate Steady on Mixed US Payrolls Report
The Pound to US Dollar (GBP/USD) exchange rate trade in a narrow range at the end of last week’s session as markets reacted to the latest US employment report.
The report revealed a modest slowdown in US payrolls in July, but also an acceleration in wage growth, ultimately resulting in USD exchange rates holding steady through Friday’s session.
Potentially providing some lift to the US Dollar later today will be publication of ISM non-manufacturing PMI as economists forecast growth in the US services sector will have remained robust through July.
GBP/CAD Exchange Rate Accelerates as Risk Appetite Slumps
The Pound to Canadian Dollar (GBP/CAD) exchange rate rallied on Friday in spite of a strong rebound in oil prices as the risk-sensitive ‘Loonie’ was undermined by renewed US-China trade tensions.
GBP/AUD Exchange Rate Surges on US-China Trade Tensions
The Pound Australian Dollar (GBP/AUD) exchange rate rocketed higher at the end of last week as renewed US-China trade tensions spooked AUD investors.
Looking ahead, the ‘Aussie’ could come under pressure overnight as the Reserve Bank of Australia (RBA) is set to maintain its dovish outlook.
GBP/NZD Exchange Rate Rallies on Trade War Fears
The Pound to New Zealand Dollar (GBP/NZD) exchange rate also shot higher on Friday as the risk-sensitive ‘Kiwi’ was undermined by fresh trade war fears.
Driving movement in NZD exchange rates overnight will be the publication of New Zealand’s latest jobs report, where an expected rise in domestic unemployment in the second quarter may dent NZD exchange rates.