Pound (GBP) Climbs as No-Deal Brexit Avoided for Now
The Pound (GBP) got off to a steady start this week, trending higher on Monday after the EU granted the UK’s request to delay Brexit until January.
Sterling held onto these gains through the evening as Prime Minister, Boris Johnson failed to secure the two-thirds majority he needed in order to call a general election.
Despite the setback, Johnson will make a fourth attempt today, this time using a single line bill which only requires a simple majority to trigger an election.
GBP/EUR Exchange Rate Steady as Draghi Pushes for More Fiscal Stimulus
The Pound Euro (GBP/EUR) exchange rate was mostly rangebound through Monday’s session, with a speech by outgoing European Central Bank (ECB) President, Mario Draghi the only event of note.
Speaking in Frankfurt, Draghi once again urged EU leaders to implement more fiscal stimulus, advising that a more active fiscal policy would lead to higher interest rates.
In the absence of any notable Eurozone data, the single currency may struggle to find support today as investors look ahead to Thursday’s GDP release.
GBP/USD Exchange Rate Strengthens on Trumps Trade Comments
The Pound to US Dollar (GBP/USD) exchange rate ticked higher at the start of the week as a risk-on mood prevailed in markets, limiting the appeal of the safe-haven ‘Greenback’.
Increased risk appetite came on the back of comments from Donald Trump, who suggested the US and China were on track to sign a preliminary trade deal next month.
Expect bearish tones toward the US Dollar to continue today as markets brace for an upcoming rate decision from the Federal Reserve.
GBP/CAD Exchange Rate Buoyed as Oil Prices Slip
The Pound to Canadian Dollar (GBP/CAD) exchange rate crept higher on Monday, with the oil-sensitive ‘Loonie’ struggling to find support as crude prices edged lower.
GBP/AUD Exchange Rate Slumps on US-China Trade Optimism
The Pound to Australian Dollar (GBP/AUD) exchange rate tumbled around half a cent overnight on Monday, with comments from Donald Trump buoying the trade-correlated ‘Aussie’.
Trump suggested trade talks with China were ‘ahead of schedule’, boosting hopes that a deal between the two superpowers might be signed next month.
GBP/NZD Exchange Rate Slips as Risk-On Mood Prevails
The Pound to New Zealand Dollar (GBP/NZD) exchange rate also retreated overnight as improved risk appetite saw investors flock to the ‘Kiwi’.