Pound Sterling (GBP) Exchange Rates Volatile as ‘Meaningful Vote’ Still Eludes Johnson
The Pound (GBP) traded in a wide range at the start of the week, initially tumbling in response to a chaotic weekend sitting of parliament in which a ‘meaningful vote’ on Boris Johnson’s Brexit deal proved to a be a non-starter.
Sterling subsequently rallied, in spite of Johnson’s attempt to put a yes/no vote in front of MP’s on Monday being shot down by Speaker John Bercow.
In place of the ‘meaningful vote’ MP’s will vote on the Withdrawal Agreement Bill today. This is legislation that will need to pass to allow Brexit to actually happen.
The key focus for GBP investors today will be on what amendments MPs may try to attach to the bill, with analysts expecting a push for a confirmatory referendum to be included.
GBP/EUR Exchange Rate Jumps Following Gloomy Bundesbank Forecast
The Pound Euro (GBP/EUR) exchange rate accelerated on Monday as Germany’s central bank warned that Europe’s largest economy is facing a recession.
In its latest monthly report the Bundesbank forecast that German GDP will have shrunk again in the third quarter as a result of the ‘continued downturn in the export-oriented industry’.
The Bundesbank’s Sabine Mauderers will speak later today, with the Euro potentially slipping again if she continues to warn of the pressures facing Germany’s economy.
GBP/USD Exchange Rate Buoyed amid Risk-On Mood
The Pound to US Dollar (GBP/USD) exchange rate drifted higher at the start of the week as a risk-on mood prevailed, limiting demand for the safe-haven ‘Greenback’.
Hopes of a breakthrough in US-China trade talks helped to keep risk appetite alive on Monday, with traders seizing on Chinese Vice Premier Liu He’s suggestion that ‘substantial progress’ had been made in talks.
The focus will remain on US-China trade relations today in the absence of any notable US data, with a positive news flow likely keeping a cap on the US Dollar.
GBP/CAD Exchange Rate Flat Amidst Canadian Election Uncertainty
The Pound to Canadian Dollar (GBP/CAD) exchange rate held in a narrow range through the majority of yesterday’s session, with the ‘Loonie’ left directionless as election uncertainty caused investors to steer clear of CAD.
With Justin Trudeau claiming a narrow victory in yesterday’s vote the Canadian Dollar looks poised to rise today if domestic retail sales print positively.
GBP/AUD Exchange Rate Steady as the ‘Aussie’ Drifts into Overbought Territory
The Pound to Australian Dollar (GBP/AUD) exchange rate remained mostly flat overnight on Monday, with the ‘Aussie’ failing to advance in spite of a risk-on mood, leading some analysts to suggest its recent spike may have been overdone.
GBP/NZD Exchange Rate Tumbles amid Trade Optimism
The Pound to New Zealand Dollar (GBP/NZD) exchange rate fell back overnight as the positive trade headlines helped shore up support for the ‘Kiwi’.
Later tonight we may see New Zealand’s trade figures put some pressure on NZD exchange rates amidst forecasts of another contraction in the country’s trade balance last month.