Pound (GBP) Mixed as UK Supreme Court Deliberates on Proroguing of Parliament
The Pound (GBP) was left rangebound throughout much of yesterday’s session as the UK Supreme Court launched a three day hearing on Boris Johnson’s proroguing of parliament.
Given the possible repercussions a verdict against the government could have on Johnson’s strategy for Brexit, investors were unsurprisingly wary of Sterling.
However the Pound was still able to close the European session on a high as a general sense of Brexit optimism prevailed.
The UK’s latest consumer price index (CPI) is coming up today. Could Sterling move lower this morning in response to slowing UK inflation?
GBP/EUR Exchange Rate Slips as German Economic Sentiment Improves
The Pound Euro (GBP/EUR) exchange rate trended lower on Tuesday as Germany’s latest ZEW economic sentiment index buoyed the single currency.
The survey of economists revealed the mood in Germany showed a notable September improvement, with easing US-China trade war fears lifting the index from -44.1 to -22.5.
Today’s Eurozone CPI figures, expected to confirm inflation in the bloc stalled at a two-year low in August, could potentially weigh on the Euro.
GBP/USD Exchange Rate Flat as Markets Brace for a Fed Rate Decision
The Pound to US Dollar (GBP/USD) exchange rate traded in a narrow range yesterday as USD investors sat on their hands ahead of the Federal Reserve’s latest policy meeting.
The Fed is widely expected to lower September interest rates to 2% in an effort to maintain momentum in the US economy.
However with the move largely priced in by markets, the direction of USD following this evening’s announcement will likely be informed by the bank’s forward guidance. Any signals of further easing could have a negative impact.
GBP/CAD Exchange Rate Rebounds as Oil Rally Loses Steam
The Pound to Canadian Dollar (GBP/CAD) exchange rate rebounded on Tuesday as the recent crude rally bottomed-out, with a plunge of nearly 6% limiting the oil-sensitive ‘Loonie’
But could CAD exchange rates bounce back later this afternoon if Canadian inflation held at 2% in August?
GBP/AUD Exchange Rate Accelerates on Gloomy Australian Data
The Pound to Australian Dollar (GBP/AUD) exchange rate struck a fresh three-week high overnight on Tuesday, with the ‘Aussie’ weakening on the back of a dismal reading from Westpac’s forward looking leading index.
Coming up later tonight, the publication of Australia’s jobs report could see AUD exchange rates weaken if domestic unemployment met expectations and rose last month.
GBP/NZD Exchange Rate Rallies as Risk Appetite Weakens
The Pound to New Zealand Dollar (GBP/NZD) exchange rate also leapt overnight, climbing to a four-month high as NZD was undermined by deteriorating market risk appetite.
Looking ahead, the ‘Kiwi’ may face headwinds later this evening as New Zealand’s GDP figures are expected to show August’s economic growth slowed from 0.6% to 0.4%.