Pound Sterling (GBP) Exchange Rate Surges on Brexit Deal Hopes
Investors flocked back to the Pound (GBP) on Tuesday morning as they seized on comments made by the EU’s chief Brexit negotiator, Michel Barnier.
Speaking to the EU’s general affairs council, Barnier said that while it would be ‘difficult’ it was ‘still possible’ that a Brexit deal could be found this week, triggering a fresh bout of GBP buying.
Sterling was then turbo charged later in the session after reports emerged that the UK and EU were closing in on a draft Brexit deal.
While Brexit will continue dominating Sterling sentiment today, GBP investors will also keep an eye out for the UK’s Consumer Price Index. Could a rise in inflation offer further support to the Pound?
GBP/EUR Exchange Rate Jumps as Eurozone Pessimism Grows
The Pound Euro (GBP/EUR) exchange rate broke through key resistance levels yesterday, striking a fresh five-month high in the process.
The single currency floundered as the latest ZEW surveys revealed that economic sentiment in the Eurozone deteriorated further.
The Euro may continue to suffer today, with the Eurozone’s final CPI reading expected to confirm that inflation in the bloc fell to a two-year low in September.
GBP/USD Exchange Rate Gains Capped as US Data Beats Expectations
The Pound to US Dollar (GBP/USD) exchange rate was back on the offensive on Tuesday, but failed to consolidate at its best levels after some upbeat US data.
The Empire State index came in above expectations this month, rising from 2 to 4 and suggesting a slowdown in the US manufacturing sector may not be as widespread as previously feared.
The US Dollar may struggle to extend its gains into today’s session however, with economists forecasting that data will show domestic retail sales slowed in September.
GBP/CAD Exchange Rate Buoyed by Weak Oil Prices
The Pound to Canadian Dollar (GBP/CAD) exchange rate trended higher yesterday, with the ‘Loonie’ left vulnerable as oil prices slipped.
CAD exchange rates look poised to rebound today however, with an uptick in domestic inflation providing yet another reason for the Bank of Canada (BoC) to leave interest rates on hold for the time being.
GBP/AUD Exchange Rate Jumps to Three-Year High
The Pound to Australian Dollar (GBP/AUD) exchange rate struck a post-Brexit referendum high last night as trade war anxiety resulted in investors shying away from the risk-sensitive ‘Aussie’.
GBP/NZD Exchange Rate Gains Limited by Upbeat NZ Inflation Figures
The Pound to New Zealand Dollar (GBP/NZD) exchange rate met resistance overnight on Tuesday, with the ‘Kiwi’ buoyed as domestic inflation beat expectations in the third quarter, relieving some of the pressure on the Reserve Bank of New Zealand (RBNZ) to continue cutting rates.