Pound Sterling (GBP) Bolstered by Upbeat GDP
The Pound (GBP) trended higher at the start of this week, recouping some of its recent losses in response to the UK’s latest GDP reading.
Whilst second quarter growth was confirmed to have contracted by 0.2%, GBP investors seized on the annualised figures, which saw Q1 growth revised up from 0.5% to 0.6%
Keeping the focus on UK economic data this morning we have the latest UK manufacturing PMI, with another contraction in domestic factory growth potentially dragging on Sterling.
GBP/EUR Exchange Rate Surges on Weak German Inflation Figures
The Pound Euro (GBP/EUR) exchange rate shot higher on Monday in response to Germany’s latest consumer price index (CPI).
A preliminary reading for September reported that German inflation sank from 1.4% to 1.2%, or 0.9% when harmonised with the Eurozone. This fed into fears for the country’s economic outlook.
Today we could see this slump reflected in the latest Eurozone CPI figures. If inflation in the bloc underperformed last month it’s likely the Euro will face some pressure.
GBP/USD Exchange Rate Firms as US Regional PMIs Miss
The Pound to US Dollar (GBP/USD) exchange rate initially struggled yesterday as rising safe-haven demand offered broad support to the ‘Greenback’.
However, USD exchange rates softened again later in the session after the Chicago and Dallas manufacturing PMI’s both printed below expectations in September.
Looking ahead, USD investors will be focused on the latest ISM manufacturing PMI.
Last month’s release revealed a shock contraction in US factory growth, with a similarly gloomy reading this afternoon likely to put pressure on the US Dollar.
GBP/CAD Exchange Rate Buoyed by Slide in Oil Prices
The Pound to Canadian Dollar (GBP/CAD) exchange rate ticked higher on Monday as the oil-sensitive ‘Loonie’ was undermined by another slip in crude prices.
CAD exchange rates may remain on the back foot today as well if, as some economists expect, Canadian GDP figures reveal domestic growth slowed in July.
GBP/AUD Exchange Rate Rockets on RBA Rate Cut
The Pound to Australian Dollar (GBP/AUD) exchange rate shot up by over a cent overnight on Monday as the Reserve Bank of Australia (RBA) concluded its latest policy meeting.
As was widely expected, the RBA voted to ease monetary policy again this month, cutting interest rates to a record low of 0.75% in an attempt to support Australia’s slowing economy and offset global headwinds.
GBP/NZD Exchange Rate Rallies as Risk Sentiment Weakens
The Pound to New Zealand Dollar (GBP/NZD) exchange rate also jumped overnight, with investors remaining bearish towards the ‘Kiwi’ in response to a fall in risk appetite and a dovish RBA.