Pound Sterling (GBP) Exchange Rates Lifted by Boris Johnson’s Brexit Optimism
The Pound (GBP) leapt higher on Thursday as investors appeared to buy into Boris Johnson’s optimism on Brexit.
Speaking in parliament, Johnson told MPs his ‘final’ offer to the EU was a ‘genuine attempt to bridge the chasm’ which, coupled with the EU’s refusals to flat-out reject the proposals, seemed to infuse confidence in Sterling.
This optimism helped to offset the publication of the UK’s latest services PMI, which revealed a shock contraction in the all-important service sector in September.
Looking ahead we expect the focus to remain on Brexit, with the direction of the Pound likely to be dictated by the EU’s formal response to Johnson’s proposals.
GBP/EUR Exchange Rate Climbs, US to Impose Tariffs on EU
The Pound Euro (GBP/EUR) exchange rate surged over half a cent yesterday as the prospect of a US-EU trade war spooked markets.
The US announced it would impose $7.5bn worth of tariffs on EU exports after the World Trade Organization (WTO) ruled against European aerospace giant Airbus in a case over illegal state aid.
Eurozone economic data is thin on the ground today, although a speech by the European Central Bank’s (ECB) Luis de Guindos could influence the single currency if he touches on the ECB’s recent stimulus measures.
GBP/USD Exchange Rate Skyrockets Following Sharp Drop in US Services PMI
The Pound to US Dollar (GBP/USD) exchange rate soared yesterday in response to a worrying drop in US service sector growth in September.
The ISM non-manufacturing PMI was reported to have plummeted from 56.4 to just 52.6 last month, taking growth in the services sector to a three-year low and stoking speculation of further rate cuts from the Federal Reserve.
The US non-farm payrolls report could dominate the attention of USD investors today.
The highly influential figures may cast the US Dollar lower this afternoon if they show that US employment growth slowed again last month.
GBP/CAD Exchange Rate Extends Gains as Oil Drops to $57
The Pound to Canadian Dollar (GBP/CAD) exchange rate extended its gains into a second day on Thursday, with the oil-sensitive ‘Loonie’ struggling to hold its ground as Brent crude slumped to just $57 a barrel.
GBP/AUD Exchange Rate Dips as Australian Retail Sales Rebound
The Pound to Australian Dollar (GBP/AUD) exchange rate trended lower overnight on Thursday as the ‘Aussie’ was bolstered by a rebound in domestic retail sales growth in August.
GBP/NZD Exchange Rate Slides as Risk Appetite Improves
The Pound to New Zealand Dollar (GBP/NZD) exchange rate also tracked lower during the Asian session as the broad decline in the US Dollar (USD) helped to bolster the appeal of the risk-sensitive ‘Kiwi’.