Pound Sterling News: How will Today’s UK GDP Report Impact GBP Exchange Rates?

Pound Sterling (GBP) Poised to Slide on UK GDP Figures

The Pound (GBP) was left on the defensive on Thursday as markets were spooked by reports Boris Johnson is gearing up for a general election after Brexit.

Expect to see Brexit take a back seat today however as the UK publishes its latest GDP report.

Sterling could tumble this morning as economists forecast that economic growth stagnated in the second quarter.

GBP/EUR Exchange Rate Muted amid Italian Political Uncertainty

The Pound to Euro (GBP/EUR) exchange rate briefly touched a fresh two-year low yesterday, before recouping these losses on reports of political turmoil in Italy.

Headlines suggest that Italy’s coalition government is close to collapse as the League is resistant to a cabinet reshuffle and is likely to seek a fresh election in an effort to secure a majority.

The Euro may struggle to hold its ground today as Germany’s trade figures showed a contraction in exports in June.

GBP/USD Exchange Rate Subdued as Risk Sentiment Improves

The Pound to US Dollar (GBP/USD) exchange rate was left to trade in a narrow range on Thursday as demand for the safe-haven ‘Greenback’ was clipped by a risk-on mood.

This rise in risk appetite came on the back of upbeat Chinese trade figures as well as reports the next round of US-China trade talks have been scheduled for September.

Coming up today we have the release of the latest US PPI figures, which could help to boost the US Dollar as an expected acceleration in producer prices bodes well for next week’s inflation reading.

GBP/CAD Exchange Rate Slides amid Modest Rebound in Oil Prices

The Pound to Canadian Dollar (GBP/CAD) exchange rate trended lower yesterday as a modest rebound in crude prices drove the oil-sensitive ‘Loonie’ higher against a weakened Sterling.

Expect to see CAD exchange rates struggle to find support through today’s session however as economists forecast that Canada’s latest jobs data will show a drop in full-time employment.

GBP/AUD Exchange Rate Weakened by RBA Remarks

The Pound Australian Dollar (GBP/AUD) exchange rate was left to trade at a one-week low overnight on Thursday following a speech by Reserve Bank of Australia (RBA) Governor Philip Lowe.

The ‘Aussie’ strengthened on the back of Lowe suggesting that the Reserve Bank of New Zealand’s (RBNZ) aggressive rate cut earlier this month won’t impact the RBA’s future policy decisions.

GBP/NZD Exchange Rate Down as Risk Sentiment Improves

The Pound to New Zealand Dollar (GBP/NZD) exchange rate continued to fall back yesterday as optimism regarding possible US-China trade talks in September helped to boost the appeal of the risk-sensitive ‘Kiwi’.

Matthew Andrews

Contact Matthew Andrews