Pound (GBP) Erratic Following Brexit Setback
The Pound (GBP) traded in a wide range at the end of last week’s session amid speculation over whether Boris Johnson would have the numbers to get his Brexit deal through parliament.
Sterling surged late in trade on Friday as Johnson appeared optimistic that his deal would make it through.
However the ‘meaningful vote’ did not go ahead as planned, with MP’s instead voting to postpone it, resulting in a sharp Pound sell-off at this week’s opening bell.
Johnson now hopes to hold a vote at the start of this week, ensuring further GBP exchange rate volatility for the time being.
GBP/EUR Exchange Rate Volatile, Euro Also Takes Cues from Brexit
The Pound Euro (GBP/EUR) exchange rate fluctuated on Friday, with the single currency also showing limited movement going into Saturday’s Brexit vote.
Also undermining support for the Euro were lingering concerns over the state of the Eurozone, as economists issued fresh warnings about a possible German recession in the third quarter.
Looking to the week ahead, the focus for EUR investors will be on the European Central Bank’s (ECB) latest policy meeting.
GBP/USD Exchange Rate Buoyed by US Dollar Sell-Off
The Pound to US Dollar (GBP/USD) exchange rate edged higher on Friday amid broad weakness in the ‘Greenback’ as a risk-on mood prevailed.
The US Dollar’s bearish run may continue this week, with a suspected contraction in US durable goods orders last month likely to cast more gloom over the US economy.
GBP/CAD Exchange Rate Steady as Canada Heads to the Polls
The Pound to Canadian Dollar (GBP/CAD) exchange rate was mostly range bound at the end of last week as markets grew nervous ahead of Canada’s Federal election.
The election is thought to be too close to call and we may see some volatility in the ‘Loonie’ today as a result.
GBP/AUD Exchange Rate Slides Following PBOC Rate Decision
The Pound to Australian Dollar (GBP/AUD) exchange rate opened this week’s session on the back foot, with the ‘Aussie’ gaining after the People’s Bank of China (PBOC) kept rates on hold.
GBP/NZD Exchange Rate Stumbles
The Pound to New Zealand Dollar (GBP/NZD) exchange rate also stumbled at the start of the week, with the ‘Kiwi’ finding support thanks to improved market risk appetite following the PBOC rate decision.