Pound (GBP) Static as Brexit Uncertainty Persists
The Pound (GBP) treaded water at the end of last week’s session as a result of heightened Brexit and UK political uncertainty.
Sterling was forced into a holding pattern on Friday as the EU postponed its final verdict on whether to grant an extension to Brexit until early this week.
EU officials stated more time was needed to decide on the length of the delay in light of a possible UK election.
Boris Johnson intends to put a motion for a snap election in front of parliament today, but it remains unclear whether he will actually secure the numbers to push it through.
GBP/EUR Exchange Rate Muted as German IFO Beats Expectations
The Pound Euro (GBP/EUR) exchange rate limped over the finishing line on Friday as markets cheered the release of the key German IFO survey.
The survey surprise to the upside this month, with German business sentiment stabilising – possibly hinting the county’s economy may have bottomed out.
Looking to the week ahead, the Eurozone GDP figures will be centre stage, with the Euro poised to tumble if growth slowed in the third quarter as forecast.
GBP/USD Exchange Rate Flat, Markets Brace for Fed Rate Cut
The Pound to US Dollar (GBP/USD) exchange rate was left adrift at the end of last week as the upside potential of the ‘Greenback’ was limited ahead of this week’s Federal Reserve rate decision.
The Fed is overwhelming expected to ease monetary policy again this week, implementing its third rate cut in as many months as cracks in the US economy begin to show.
Outside of the upcoming Fed decision, USD investors will also be focused on US GDP figures this week. Will the downturn in US manufacturing lead to a substantial slowdown in Q3?
GBP/CAD Exchange Rate Subdued as Oil Prices Stabilise
The Pound to Canadian Dollar (GBP/CAD) exchange rate remained range bound on Friday, with the oil-sensitive ‘Loonie’ trading sideways as crude prices stalled.
GBP/AUD Exchange Rate Rallies despite Upbeat Trade Headlines
The Pound to Australian Dollar (GBP/AUD) exchange rate is trending higher at the start of this week in spite of some positive US-China trade developments.
Reports suggest that the two sides are close to finalising a ‘phase 1’ trade deal following a phone call between representatives late on Friday, but the ‘Aussie’ struggled to capitalise on the upbeat news amidst a wider risk-off mood.
GBP/NZD Exchange Rate Gains During Cautious Trade
The Pound to New Zealand Dollar (GBP/NZD) exchange rate also accelerated this morning, with the ‘Kiwi’ coming under pressure as markets remain cautious ahead of what looks to be an eventful week for currency markets.