Pound Sterling (GBP) Exchange Rates Dented by Brexit Uncertainty
The Pound (GBP) fell to its lowest levels since mid-September yesterday as persistent Brexit jitters continued to weigh on Sterling sentiment.
Sterling losses were triggered after Boris Johnson admitted that the ‘realities’ of Brexit would make customs checks along the Irish border inevitable.
The GBP slump came despite the latest UK manufacturing PMI printing higher than expected in September, with markets unimpressed after analysts warned the headline figures masked underlying weakness in the factory sector.
Looking ahead, another gloomy construction PMI could drag on the Pound this morning, potentially leading to some volatility later in the day as Johnson’s takes to the stage to deliver his Conservative party conference speech.
GBP/EUR Exchange Rate Slides to Two-Week Low
The Pound Euro (GBP/EUR) exchange rate tumbled by almost a cent on Tuesday, propelling the pairing to a new two-week low.
This comes in spite of the latest flash Eurozone CPI showing headline inflation fell to just 0.9% in September, its lowest levels since November 2016.
Eurozone data is thin on the ground today, something which could limit EUR movement throughout the session as markets await the publication of the Eurozone’s retail sales figures on Thursday.
GBP/USD Exchange Rate Slumps In spite of Worrying US Manufacturing Data
The Pound to US Dollar (GBP/USD) exchange rate fell to a new three-week low yesterday, despite the latest ISM manufacturing PMI painting a worrying picture of the US factory sector.
According to ISM’s September release, the US manufacturing sector suffered its largest contraction in over a decade, stoking concerns that the US could be headed towards a recession.
Coming up later this afternoon, the release of the latest US ADP employment figures may dampen the appeal of the US Dollar. A possible slide in employment growth in September may lower expectations ahead of Friday’s non-farm payroll figures.
GBP/CAD Exchange Rate Losses Trimmed as Canadian Economy Stalls
The Pound to Canadian Dollar (GBP/CAD) exchange rate edged lower on Tuesday, but was prevented from registering more significant losses as the appeal of the ‘Loonie’ was capped after domestic data showed Canada’s economy stalled in July.
GBP/AUD Exchange Rate Bearish on Easing Trade Fears
After soaring during Tuesday’s session following the Reserve Bank of Australia’s (RBA) decision to cut interest rates, the Pound to Australian Dollar (GBP/AUD) exchange rate gave up some ground overnight as trade war concerns started to ease.
GBP/NZD Exchange Rate Slips as Risk Sentiment Improves
The Pound to New Zealand Dollar (GBP/NZD) exchange rate also drifted lower overnight on Tuesday, with a modest improvement in market risk appetite helping to provide some support to the ‘Kiwi’.