Pound (GBP) Exchange Rates Directionless as Markets Await EU’s Response to Brexit Extension
The Pound (GBP) was left to nurse it wounds throughout yesterday’s session amid renewed Brexit uncertainty.
The EU found the Brexit ball back in its court, with leaders once again debating whether to grant the UK an extension to the Brexit deadline.
Sterling was left directionless as markets awaited a formal response from Brussels.
In the absence of any other catalysts, Brexit will continue to dictate the direction of the Pound today. Expect GBP investors to be kept on their toes by the latest twists and turns of the Brexit saga.
GBP/EUR Exchange Rate Steady as Consumer Confidence Sours
The Pound Euro (GBP/EUR) exchange rate was muted on Wednesday as both currencies were paralyzed by renewed Brexit uncertainty.
Further limiting movement in the single currency was the Eurozone’s latest consumer confidence survey, which saw household sentiment fall to its worst levels since December.
In the spotlight today will be the European Central Bank’s (ECB) October rate decision. No policy changes are expected this month, but EUR investors will be looking for any signals on whether the bank is open to introducing additional stimulus measures.
GBP/USD Exchange Rate Stable as US Economic Concerns Grow
The Pound to US Dollar (GBP/USD) exchange rate was left mostly range bound yesterday as a recent recovery in the ‘Greenback’ began to run out of steam amid rising fears over US economic growth.
US aerospace manufacturer Boeing and construction equipment firm Caterpillar both posted weak quarterly results yesterday, sparking renewed concerns about a downturn in US manufacturing.
Today’s US durable goods orders reading is likely to feed into these fears later this afternoon, with an expected contraction poised to weaken the US Dollar as it casts more gloom over the US factory sector.
GBP/CAD Exchange Rate Muted as Canadian Wholesales Sales Tumble
The Pound to Canadian Dollar (GBP/CAD) exchange rate held in a narrow range throughout Wednesday’s session, with the ‘Loonie’ failing to capitalise on an uptick in oil prices due to a shock contraction in domestic wholesale sales in August.
GBP/AUD Exchange Rate Rallies as Australian PMIs Disappoint
The Pound to Australian Dollar (GBP/AUD) exchange rate rebounded overnight on Wednesday, climbing over half a cent in response to some disappointing Australian PMI figures.
Growth in Australia’s private sector fell close to stagnation this month, putting even more pressure on the Reserve Bank of Australia (RBA) to continue cutting rates.
GBP/NZD Exchange Rate Gains as Risk Sentiment Sours
The Pound to New Zealand Dollar (GBP/NZD) exchange rate also rallied overnight, with the risk-sensitive ‘Kiwi’ giving ground as a cautious mood prevailed in markets.