Possible Breakthrough in Brexit Turbo Charges the Pound (GBP)
The Pound (GBP) roared higher at the end of last week’s session, reaching its best levels since July on the back of rising Brexit optimism.
Reports that Northern Ireland’s Democratic Unionist Party (DUP) were prepared to abide by some EU rules after Brexit spurred the Sterling surge.
While the DUP itself dismissed the report, GBP investors seized on hopes that the UK and the EU may be edging toward a Brexit deal.
Brexit sentiment will continue to drive GBP exchange rates today as Boris Johnson meets with European Commission President Jean-Claude Juncker in Luxembourg this afternoon.
GBP/EUR Exchange Rate Soars as ECB Faces Stimulus Backlash
The Pound Euro (GBP/EUR) exchange rate jumped by almost a cent on Friday as the single currency struggled to hold onto gains made in the wake of the European Central Bank’s (ECB) stimulus announcement on Thursday.
Any benefits from the announcement were quickly offset as news emerged that prominent members of the governing council voted against the stimulus package, questioning its effectiveness.
Looking to the week ahead, some focus will be on the latest ZEW economic surveys which could put pressure on the Euro if September shows a similar deterioration in sentiment as August.
GBP/USD Exchange Rate Fails to Slow on Robust US Retail Sales
The Pound to US Dollar (GBP/USD) exchange rate shot to its best levels since July at the top of the week against a backdrop of broad US Dollar (USD) weakness.
The American currency fell sharply against most of its peers on Friday, with a stronger-than-expected US retail sales reading in August only offering modest respite.
On the calendar this week is the Federal Reserve’s latest rate decision. A rate cut has been priced in by markets, but the US Dollar could face further losses if the bank signals more monetary easing.
GBP/CAD Exchange Rate: Oil Glut Contributes to Rally
A third day of falling oil prices contributed to sharp gains in the Pound to Canadian Dollar (GBP/CAD) exchange rate on Friday, with speculation for an oil glut in 2020 weighing on crude prices and consequently the Canadian Dollar (CAD).
However the ‘Loonie’ looks set to recoup these losses after oil prices surged over 5% following Saturday’s drone strike against Saudi Arabian oil facilities.
GBP/AUD Exchange Rate Surges despite Trade Optimism
The Pound to Australian Dollar (GBP/AUD) exchange rate shot up at the end of last week’s session, with the Australian Dollar (AUD) struggling to hold ground against Sterling despite an upswing in trade optimism.
GBP/NZD Exchange Rate Propelled by Gloomy NZ Manufacturing Figures
The Pound to New Zealand Dollar (GBP/NZD) exchange rate raced higher on Friday, almost striking a four-month high as the ‘Kiwi’ was undermined by a weak manufacturing PMI.