GBP Exchange Rate News: Pound Approaches Six-Week High on Fading Recession Fears

Fading Recession Fears Turbocharge the Pound (GBP)

The Pound (GBP) got off to a strong start this week as markets cheered the publication of the UK’s latest GDP figures.

Fears that the UK could be headed for recession faded on Monday as the Office for National Statistics’ (ONS) monthly GDP release exceeded expectations, with the UK economy accelerating by 0.3% in July.

However Sterling ceded some of these gains later in the afternoon after House of Commons speaker John Bercow announced he would step down on 31 October.

Coming up this morning, the UK’s latest jobs report could help the Pound maintain its upward trajectory if wage growth prints positively in July.

GBP/EUR Exchange Rate Accelerates ahead of ECB Decision

The European Central Bank’s (ECB) upcoming rate decision kept pressure on the Euro (EUR) yesterday, leaving it vulnerable to the Pound’s advances.

However, lending some modest support to EUR in broader trade were headlines from Germany suggesting the government could tweak its 2020 budget to offer some extra fiscal stimulus.

Looking ahead, the ECB’s policy decision on Thursday is likely to continue limiting the appeal of the Euro over the next couple of days as markets brace for the announcement of the bank’s ‘substantial’ stimulus package.

GBP/USD Exchange Rate Surges on Persistent US Dollar Weakness

The US Dollar (USD) found itself subject to further losses against the Pound yesterday, propelling the GBP/USD exchange rate close to a six-week high.

The ‘Greenback’ experienced a significant sell-off last week thanks to growing fears of an approaching US recession despite upbeat comments from Federal Reserve Chair Jerome Powell.

With only second tier US data on the docket there appears to be little chance for the US Dollar to reverse this downtrend today.

Surging Oil Prices Limit Upside in GBP/CAD Exchange Rate

The Pound Canadian Dollar (GBP/CAD) exchange rate climbed nearly a cent yesterday, but struggled to reclaim the heights struck last week as the oil-sensitive ‘Loonie’ was underpinned by surging crude prices, with Brent rising by over 1%.

GBP/AUD Exchange Rate Consolidates Gains on Gloomy Australian Data

After bouncing back on Monday, the Pound to Australian Dollar (GBP/AUD) exchange rate was able to consolidate these gains overnight as Australia’s business confidence figures printed below expectations.

Abysmal Chinese PPI Buoys GBP/NZD Exchange Rate

The Pound to New Zealand Dollar (GBP/NZD) exchange rate also held on to yesterday’s gain overnight as market risk appetite was kept in check by China’s latest PPI figures. They revealed producer prices suffered their largest contraction in three years.

Matthew Andrews

Contact Matthew Andrews