Pound (GBP) Surges as Boris Johnson Loses Grip on Brexit
Growing confidence that the UK will avoid crashing out of the EU next month saw the Pound (GBP) maintain its upward trajectory yesterday.
This comes after Boris Johnson was defeated in two key votes on Wednesday, leaving his government struggling to maintain its grip on Brexit.
Delivering another blow to the PM’s authority was the shock resignation of his brother Jo Johnson, which delivered another boost to Sterling on Thursday.
With little in the way of UK data, it seems highly likely that GBP exchange rates will continue to be driven by UK political headlines today.
Gloomy German Data Propels GBP/EUR Exchange Rate to Five-Week High
Another piece of worrying German data saw the Pound to Euro (GBP/EUR) exchange rate climb to a five-week high on Thursday.
German factory orders fell by 2.7% in July, almost twice as much as forecast by economists, stoking fears the country could slip into a recession in the third quarter.
Looking to today’s session, the Euro may continue to face headwinds this morning after Germany’s latest industrial production figures painted an equally gloomy picture of the country’s manufacturing sector.
Upbeat US Data Fails to Undermine Gains in GBP/USD Exchange Rate
The Pound US Dollar (GBP/USD) exchange rate struck its best levels since July on Thursday, extending its recent rally by another cent despite some impressive US data.
While the ISM non-manufacturing PMI reported growth was at a three-month high in August, allaying fears of an economic slowdown, it was not enough to spur USD bulls back into action.
In the spotlight today is the latest US non-farm payroll figures. Could an underwhelming rise in employment last month send the US Dollar even lower?
GBP/CAD Exchange Rate Strengthens In Spite of Surging Oil Prices
While Brent crude rose over $61 a barrel on Thursday thanks to US-China trade optimism, it failed to energise the oil-sensitive Canadian Dollar (CAD), which crumbled in the face of the Pound’s (GBP) continued strength.
But there may be a chance for CAD exchange rates to bounce back later today if data shows domestic employment rebounded as expected in August.
Improving Risk Appetite Limits Movement in GBP/AUD Exchange Rate
After soaring over a cent during the European session on Thursday, the Pound to Australian Dollar (GBP/AUD) exchange rate was left to trade in a narrow range overnight as improved market risk sentiment lent some support to the ‘Aussie’.
GBP/NZD Exchange Rate Jumps amid Concerns for Dairy Giant
The Pound to New Zealand Dollar (GBP/NZD) exchange rate shot higher on Thursday, with the ‘Kiwi’ struggling to hold its ground following the news that Dairy giant Fonterra had scrapped bonuses and frozen the pay of roughly 7,000 employees.
Diary is a key export for New Zealand so Fonterra’s woes were viewed as NZD negative.