Pound Sterling (GBP) Exchange Rate Plunges as Brexit Deal ‘Overwhelming Unlikely’
The Pound (GBP) fell sharply on Tuesday, with investors steering clear of the currency on reports that UK-EU Brexit talks are on the verge of breaking down.
These fears were exacerbated by a phone call between Boris Johnson and German Chancellor Angela Merkel. Sources within Downing Street said the exchange was a ‘clarifying moment’ and that Merkel made it clear a deal was ‘overwhelmingly unlikely’.
There was scepticism within the EU that Merkel would have been so forward and warned the UK against creating a ‘stupid blame game’, but it appeared GBP investors were willing to take Number 10 at its word.
The Bank of England (BoE) will deliver its latest Financial Policy Committee statement later today. Could the Pound come under more pressure as the FPC highlights potential risks to financial stability in the UK?
GBP/EUR Exchange Rate Tumbles as German Industrial Data Beats Forecasts
The Pound Euro (GBP/EUR) exchange rate slumped to a one-month low on Tuesday, with the single currency pressing its advantage against the Sterling thanks to some upbeat German data.
Germany’s industrial production figures surprised markets yesterday, with a surprise rebound in factory output helping to ease concerns that Europe’s largest economy is in a death spiral this year.
In an absence of any economic data today, the Euro may struggle to find momentum – especially as Brexit developments and US-China trade headlines look set to dominate market attention.
GBP/USD Exchange Rate Slumps as US-China Trade Tensions Rise
The Pound to US Dollar (GBP/USD) exchange rate fell sharply yesterday, striking its worst levels since early September.
Investors flocked to the safe-haven ‘Greenback’ on Tuesday as Washington’s move to impose visa restrictions on Chinese officials connected to human rights violations in China’s Xinjiang province threatens to de-rail US-China trade talks before they even begin.
The minutes from the Federal Reserve’s September rate decision could shine some more light on the bank’s policy outlook later this evening, potentially putting some pressure on USD exchange rates if policymakers appear open to more rate cuts.
GBP/CAD Exchange Rate Losses Capped by Oil Sell-Off
The Pound to Canadian Dollar (GBP/CAD) exchange rate fell roughly a cent during yesterday’s session, but was prevented from returning to the lows struck last week as the upside in the ‘Loonie’ was capped by a slump in oil prices.
GBP/AUD Exchange Rate Remains on the Defensive Despite Gloomy Confidence Figures
The Pound to Australian Dollar (GBP/AUD) exchange rate remain subdued overnight on Tuesday, trading close to a three-week low in spite of data showing Australian consumer sentiment fell to a four-year low in October.
GBP/NZD Exchange Rate Trading Close to a One-Month Low
The Pound to New Zealand Dollar (GBP/NZD) exchange rate also remained in the doldrums overnight as negative Brexit sentiment offset sliding market risk-sentiment ahead of the US-China trade talks in Washington.