Pound Sterling (GBP) Steady as UK Services Sector Shows Improvement
Outside of an initial wobble, the Pound (GBP) was mostly steady on Monday as markets welcomed the UK’s latest PMI release. The data revealed the UK’s all-important service sector expanded as its fastest pace in nine months in July.
However at the same time, persistent Brexit uncertainty continued to limit the upside potential in Sterling yesterday, with the UK government re-affirming its commitment to leaving the EU in October.
In the absence of any notable UK economic data today, we may see concerns of a no-deal Brexit continue to cap any gains in GBP exchange rates.
GBP/EUR Exchange Rate Slides to New Two-Year Low
The Pound to Euro (GBP/EUR) exchange rate got off to a poor start this week as the pairing struck a fresh two-year low yesterday.
This was triggered by a sharp rise in the single currency on Monday. Demand for EUR was bolstered by the weakness in the US Dollar.
Looking to today’s session, the Euro may continue to accelerate after Germany reported a strong rebound in domestic factory orders in June.
GBP/USD Exchange Rate Steady as US Services PMI Disappoints
The Pound to US Dollar (GBP/USD) exchange rate traded in a narrow range yesterday, with the ‘Greenback’ struggling to find support after the ISM non-manufacturing PMI came in below expectations in July.
Adding to the pressure on USD exchange rates were concerns over the US-China trade war, with a sharp slump in the Chinese Yuan stoking concerns that Beijing may be gearing up for a ‘currency war’.
Coming up later today we have the publication of the latest JOLTs jobs report, which could provide some lift to the US Dollar if jobs openings remained robust in June as expected.
GBP/CAD Exchange Rate Buoyed as Oil Prices Slump
The Pound to Canadian Dollar (GBP/CAD) exchange rate edged higher on Monday as demand for the oil-sensitive ‘Loonie’ was undermined by a sharp drop in the commodity, with Brent crude prices falling back to $60 a barrel.
GBP/AUD Exchange Rate Slips Following RBA Policy Decision
The Pound Australian Dollar (GBP/AUD) exchange rate trended lower overnight on Monday in the wake of the Reserve Bank of Australia’s (RBA) latest policy decision.
AUD investors cheered as the RBA kept rates on hold and refrained from suggesting further rate cuts.
GBP/NZD Exchange Rate Fluctuates as NZ Unemployment Strikes an 11-Year Low
The Pound to New Zealand Dollar (GBP/NZD) exchange rate traded in a wide range overnight, with NZD exchange rates initially jumping on the back an impressive domestic unemployment report, before quickly falling back again as risk sentiment continued to sour.
Taking place overnight is the Reserve Bank of New Zealand’s (RBNZ) latest policy meeting, where an expected rate cut will likely dampen demand for the ‘Kiwi’.