Pound (GBP) Soars as Brexit Talks Intensify
The Pound (GBP) was catapulted to a four-month high on Friday, with investors flocking to Sterling in droves in response to growing optimism for a Brexit deal.
This came as EU leaders gave EU chief negotiator Michel Barnier the green light to open intensive tunnel negotiations with the UK in hopes a deal could be found by the EU summit on Thursday.
Brexit will remain the key motivator of the Pound this week. Could more positive developments trigger another GBP buying frenzy?
GBP/EUR Exchange Rate Skyrockets to Four-Month High
The Pound Euro (GBP/EUR) exchange rate struck its best levels since May at the end of last week’s session, mostly in response to the favourable conditions surrounding Sterling.
In the absence of any data, EUR investors were left to reflect on the current state of the Eurozone economy as analysts warned that recent releases signal a growing risk of recession within the bloc.
However, the Euro may look to recoup some ground this morning, with the Eurozone’s latest industrial production figures expected to show factory output in the bloc rebounded in August.
GBP/USD Exchange Rate Surges Amid US-China Optimism
The Pound to US Dollar (GBP/USD) exchange rate closed last week’s session on a high as broad weakness in the ‘Greenback’ helped Sterling rocket higher.
Rising US-China trade optimism saw demand for safe-haven currencies like USD plummet like a stone.
Looking to the week ahead, we may see the US Dollar recoup some ground this morning as disappointing Chinese trade data weakened market risk appetite.
GBP/CAD Exchange Rate Gains Capped by Strong Employment Figures
Despite gaining over a cent on Friday, the Pound to Canadian Dollar (GBP/CAD) exchange rate closed the session just below its best levels last week, as the ‘Loonie’ was supported by an upbeat domestic jobs report.
CAD exchange rates were buoyed by robust employment and a surprise fall in the unemployment rate in September as it bolstered expectations the Bank of Canada (BoC) will be willing to leave interest rates on hold for longer.
GBP/AUD Exchange Rate Jumps to Five-Month High
The Pound to Australian Dollar (GBP/AUD) exchange rate soared by over two cents on Friday but was prevented from rising further as the risk-sensitive ‘Aussie’ was buoyed by hopes of a US-China trade deal.
GBP/NZD Exchange Rate Nears One-Year High
The Pound to New Zealand Dollar (GBP/NZD) exchange rate came just short of a one-year high at the end of last week’s session, with the ‘Kiwi’ struggling to hold its ground despite an improvement in market risk appetite.