Pound (GBP) Surges on Brexit Deal Hopes
The Pound (GBP) jumped to new multi-month highs yesterday on the back of renewed hopes that a Brexit deal can be reached.
This comes in the wake of comments by EU Commission President Jean-Claude Juncker, who told Sky News he was hopeful that a deal could be reached by 31 October.
Today’s meeting between the UK’s Brexit minister Steve Barclay and the EU’s chief negotiator Michel Barnier could also prove positive for the Pound if progress is made.
GBP/EUR Exchange Rate Mixed
The Pound Euro (GBP/EUR) exchange rate trended lower during the European session on Thursday as the single currency was buoyed by hopes of fresh fiscal stimulus in the Eurozone.
This comes following reports that the Dutch government is to present a draft 2020 budget which will focus on investment and tax cuts, suggesting that the European Central Bank’s (ECB) recent pleas for national governments to support the Eurozone through fiscal stimulus has not fallen on deaf ears.
However, the Euro may struggle to hold on to these gains today if the latest Eurozone consumer confidence figures reveal household sentiment continued to deteriorate in September.
GBP/USD Exchange Rate Jumps as US Bond Yields Drop
The Pound to US Dollar (GBP/USD) exchange rate jumped yesterday, with investors shying away from the ‘Greenback’ as a fresh slump in US bond yields spooked markets.
This forced USD to give up some of the ground made mid-week after the Federal Reserve’s hawkish rate cut.
Looking ahead, we may see USD exchange rates influenced by some Fed chatter later this afternoon as speeches by the Fed’s John Williams and Eric Rosengren potentially offer more insight into the bank’s outlook on monetary policy.
GBP/CAD Exchange Rate Muted as Oil Prices Accelerate Again
The Pound to Canadian Dollar (GBP/CAD) exchange rate was left on the defensive on Thursday in response to another rally in oil prices.
Brent crude climbed back above $65 a barrel yesterday amid ongoing concerns of disruptions to global supplies caused by the recent drone attacks in Saudi Arabia, buoying demand for the oil-sensitive ‘Loonie’.
GBP/AUD Exchange Rate Jumps on Conflicting US-China Trade Reports
The Pound to Australian Dollar (GBP/AUD) exchange rate climbed around half a cent overnight on Thursday, with the ‘Aussie’ struggling to hold off the resurgent Sterling amidst conflicting messages from the White House in regards to progress in US-China trade talks.
GBP/NZD Exchange Rate Soars to an 11-Month High
The Pound to New Zealand Dollar (GBP/NZD) exchange rate also shot higher overnight, with the pairing striking a new 11-month high thanks to declining risk appetite.