Lull in Political Headlines Prompts Uptick in Pound Sterling (GBP)
The Pound (GBP) traded robustly throughout yesterday’s session as the absence of any negative Brexit headlines saw some investors willing to take out bullish bets on the UK currency.
This was aided by comments from a Downing Street spokesperson who stated that Boris Johnson still wants to negotiate a deal.
However, Sterling may struggle to follow through with further gains as the growing risk of a no-deal Brexit continues to cast a long shadow.
GBP/EUR Exchange Rate Rebounds from Two-Year Low
A sizable correction in the Pound to Euro (GBP/EUR) exchange rate saw the pairing rebound from a two-year low on Tuesday and recoup a good portion of Monday’s losses in the process.
The slump in the Euro came in spite of some upbeat German industrial data which revealed a stronger-than-expected rebound in domestic factory order growth in June.
This downtrend in the single currency looks likely to persist through today’s session as well, after data published earlier this morning showed that German industrial production contracted again in at the end of the second quarter.
GBP/USD Exchange Rate Accelerates on Fed Rate Cut Expectations
The Pound to US Dollar (GBP/USD) exchange rate trended higher yesterday amidst renewed speculation of multiple rate cuts from the Federal Reserve this year.
With the US-China trade dispute appearing to heat up again and the Fed becoming increasingly sensitive to the risks posed to the US economy, analysts at Goldman Sachs have forecast that we may see two more cuts from the US central bank this year.
USD investors will be looking to Charles Evans later this afternoon to see if the member of the Federal Open Market Committee (FOMC) offers any support to this hypothesis.
GBP/CAD Exchange Rate Climbs as Oil Slips Below $59
The Pound to Canadian Dollar (GBP/CAD) exchange rate climbed almost half a cent on Tuesday as the ‘Loonie’ was undermined by both rising trade tensions and another slump in oil prices which saw Brent crude fall to a new seven-month low.
GBP/AUD Exchange Rate Soars as Trade Tensions Rise
The Pound Australian Dollar (GBP/AUD) exchange rate shot to a one-month high overnight on Tuesday as a risk-off mood swept through markets as a result of rising trade tensions and a rate cut from the RBNZ.
GBP/NZD Exchange Rate Skyrockets as RBNZ Surprises with Aggressive Rate Cut
The Pound to New Zealand Dollar (GBP/NZD) exchange rate rocketed roughly 2% overnight on Tuesday as the Reserve Bank of New Zealand (RBNZ) surprised markets with a larger-than-expected rate cut, slashing interest rates to a new record low of 1%.
14:30 USD Fed Evans Speech
15:00 CAD Ivey PMI (Jul)