GBP Exchange Rate News: Pound Stable, Brexit Jitters Grow

Pound (GBP) Rangebound amid Brexit Jitters

The Pound (GBP) traded in a narrow range at the end of last week’s session, with Brexit uncertainty weighing on market sentiment.

Boris Johnson exacerbated the situation by claiming opposition MPs attempts to block his plans could increase the chances of a no-deal Brexit.

Before parliament opens for business on Tuesday, we may see today’s UK manufacturing PMI exert pressure on Sterling if the results meet expectations and show a contraction in August.

Lacklustre Eurozone Inflation Boosts the GBP/EUR Exchange Rate

The Eurozone’s latest CPI figures inspired modest GBP/EUR gains on Friday.

With inflation stalling at just 1% – its lowest level since November 2016 – the European Central Bank (ECB) will feel the pressure to deliver a stimulus package this month.

Looking ahead, EUR investors will turn their attention to Germany’s latest industrial data. The report could weaken the single currency if the Eurozone’s largest economy appears to be slipping toward recession.

GBP/USD Exchange Rate Firms as Trump Launches another Attack on the Fed

The Pound to US Dollar (GBP/USD) exchange rate edged higher at the end of last week’s session as President Donald Trump once again used twitter as a platform for criticizing the Federal Reserve.

Trump bemoaned the strength of the US Dollar – suggesting it left the US at a disadvantage – while simultaneously laying blame at the feet of the central bank.

The latest US non-farm payrolls will be in focus this week, any rise in employment could potentially bolster the US Dollar.

GBP/CAD Exchange Rate Muted as Canadian GDP Soars

Canada’s latest GDP figures propelled the Pound to Canadian Dollar (GBP/CAD) exchange rate to a fresh one-week low on Friday.

Canada topped the Q2 G7 growth table as domestic growth soared by 0.9%, boosting the ‘Loonie’ by relieving pressure on the Bank of Canada (BoC) to fall in line with other central banks and lower interest rates.

GBP/AUD Exchange Rate Steady before RBA Decision

The Pound to Australian Dollar (GBP/AUD) exchange rate traded in a narrow range through Friday’s session as a pullback in the US Dollar (USD) buoyed the ‘Aussie’.

Coming up, the Reserve Bank of Australia’s (RBA) latest policy meeting could stoke some overnight volatility in the Australian currency if policymakers signal an October rate cut.

GBP/NZD Exchange Rate Stable Following Modest Improvement in Risk Sentiment

The Pound to New Zealand Dollar (GBP/NZD) exchange rate was largely rangebound at the end of last week’s session as an improvement in market risk appetite provided a stable footing for the ‘Kiwi’.

Data Releases

09:00 EUR Manufacturing PMI (Aug)

09:30 GBP Manufacturing PMI (Aug)

02:30 AUD Retail Sales (Jul)

05:30 AUD RBA Rate Decision

Matthew Andrews

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