Pound (GBP) Roars Higher on Hopes of a Brexit Deal
The Pound (GBP) mounted a stunning comeback on Thursday, rocketing on the back of renewed Brexit optimism.
This comes after German Chancellor Angela Merkel clarified her earlier suggestion that the UK had 30 days to find a solution to the Irish backstop, stating she believed a deal could be found by 31st October.
Brexit headlines may continue driving momentum in GBP exchange rates today, potentially resulting in further gains if they remain broadly positive.
Positive Eurozone PMIs Fail to Dent GBP/EUR Exchange Rate Rally
Brexit optimism proved the main catalyst of movement in the Pound Euro (GBP/EUR) exchange rate yesterday, overshadowing the publication of the Eurozone’s latest PMI figures.
These revealed growth in the bloc’s private sector expanded this month, although not enough to alleviate concerns that Germany could slip into a recession in the third quarter.
In the absence of any economic data today, focus may shift back to Italy. The country faces the threat of snap elections unless a new government can be formed in the coming days, potentially putting EUR under pressure.
How Will Jackson Hole Speech Impact the GBP/USD Exchange Rate?
The Pound to US Dollar (GBP/USD) exchange rate shot higher on Thursday in spite of some hawkish comments from Kansas City Federal Reserve President Esther George.
Speaking at the Fed’s annual Jackson Hole Symposium, George claimed last month’s rate cut was unnecessary, prompting some bullish movement in broader USD trade.
However the real focus for USD investors will be the keynote speech by Fed Chair Jerome Powell later this afternoon. Markets will be hoping for more insight into the bank’s policy outlook, especially in regards to an expected rate cut in September.
GBP/CAD Exchange Rate Jumps as Oil Prices Stall
The Pound to Canadian Dollar (GBP/CAD) exchange rate struck a fresh three-week high yesterday with the oil-sensitive ‘Loonie’ unable to hold its ground against a resurgent Sterling as crude prices stalled at $60 a barrel.
The Canadian Dollar may be left on the defensive again today as domestic retail sales are expected to reveal another contraction in sales growth in June.
GBP/AUD Exchange Rate Soars as Trade Fears Linger
The Pound to Australian Dollar (GBP/AUD) exchange rate shot up by over a cent on Thursday before consolidating these gains overnight as concerns over the US-China trade dispute left investors reluctant to invest in the ‘Aussie’.
GBP/NZD Exchange Rate Slips as NZ Retail Sales Beat Expectations
After jumping during the European session, the Pound to New Zealand Dollar (GBP/NZD) exchange rate fell back yesterday evening, with the ‘Kiwi’ rallying on the back of stronger-than-expected domestic retail sales figures.