Upbeat Employment Figures Buoy the Pound (GBP)
The Pound (GBP) extended its rally into another session on Tuesday on the back of an upbeat domestic jobs report.
UK unemployment fell back to 3.8% in July at the same time that wage growth shot up to 4%, its best levels since 2008.
This uptick was further supported by growing Brexit optimism, in spite of comments from Boris Johnson insisting he will never ask for another extension.
The absence of any UK data is likely to leave the focus on UK politics, but with parliament closed for the next five weeks, there is limited scope for market-moving headlines.
GBP/EUR Exchange Rate Firms Ahead of ECB
Market caution ahead of the European Central Bank’s (ECB) upcoming policy decision helped the Pound Euro (GBP/EUR) exchange rate creep higher again yesterday.
The ECB is widely expected to announce a new stimulus package this week, and some lingering questions on what this might include left investors skittish towards the single currency.
Safe-Haven Demand Limits Upside in GBP/USD Exchange Rate
The Pound to US Dollar (GBP/USD) exchange rate held at a five-week high on Tuesday, but the pairing struggled to maintain its upward trajectory.
With only second tier US data on the docket today, declining risk appetite could help the US Dollar recoup some of its recent losses.
GBP/CAD Exchange Rate Steady as Oil Climbs to $63 a Barrel
Trade in the Pound to Canadian Dollar (GBP/CAD) exchange rate remained mostly flat yesterday. The continued strength in oil prices (Brent crude hit a five-week high and broke through $63 a barrel) underpinned demand for the commodity-linked ‘Loonie’.
GBP/AUD Exchange Rate Softens on China Stimulus Hopes
The Pound to Australian Dollar (GBP/AUD) exchange rate edged lower overnight on Tuesday, with the ‘Aussie’ boosted by hopes Beijing could inject fresh stimulus into the Chinese economy to help combat the country’s recent slowdown.
However, this upswing in AUD was capped by Australia’s lacklustre consumer confidence figures.
Modest Risk Rally Dents GBP/NZD Exchange Rate
The Pound to New Zealand Dollar (GBP/NZD) exchange rate also drifted lower overnight, with a slight uptick in market risk appetite lending the ‘Kiwi’ some support.