Pound (GBP) Stable as UK Heads Towards a December Election
The Pound (GBP) was range bound on Wednesday as markets continued to digest parliament’s decision to call an early election.
This left Sterling lacking direction, with official campaigning not set to get underway until next week and analysts warning that current polling numbers could shift dramatically in the coming weeks.
UK politics will remain in focus through today’s session, with the passing of another Brexit deadline likely to be seized on by opposition parties seeking to get a leg up on Boris Johnson ahead of the election.
GBP/EUR Exchange Rate Steady on Mixed Eurozone Data
The Pound Euro (GBP/EUR) exchange rate traded sideways on Wednesday, with mixed data from the Eurozone leaving the single currency struggling to find momentum.
While French GDP came in above expectations in the third quarter, EUR investors were left dejected by Germany’s latest CPI figures, which revealed domestic inflation slumped to a new two-year low in October.
In the spotlight today will be a preliminary reading of the Eurozone’s third quarter GDP figures, with the Euro poised to fall as economic growth slows.
GBP/USD Exchange Rate Soars Following Fed Rate Decision
The Pound to US Dollar (GBP/USD) exchange rate jumped around half a cent yesterday as the Federal Reserve delivered its third consecutive rate cut.
While the rate cut was already priced in by markets and the Fed signalled it was likely finished with easing for now, the US Dollar still fell sharply as markets had expected a more hawkish tone from the bank this month.
Elsewhere, US GDP printed more strongly than expected in the third quarter, but signs of underlying economic weakness prevented the US Dollar from capitalising.
Going into the second half of the week, the focus for USD investors will be on the latest US payroll figures, with gloomy expectations of a slump in employment potentially applying pressure to the US Dollar.
GBP/CAD Exchange Rate Strengthens Following BoC Rate Decision
The Pound to Canadian Dollar (GBP/CAD) exchange rate trended higher on Wednesday, jumping almost a cent in the wake of the Bank of Canada’s (BoC) latest rate decision.
While the bank kept rates on hold as expected, it struck a decidedly dovish tone in its outlook, with Governor Stephen Poloz warning Canada has ‘not been immune’ to slowing global growth.
GBP/AUD Exchange Rate Tumbles Following USD Sell-Off
The Pound to Australian Dollar (GBP/AUD) exchange rate hit a two-week low overnight on Wednesday as broad weakness in the US Dollar (USD) and continued US-China trade optimism helped buoy demand for the risk-sensitive ‘Aussie’.
GBP/NZD Exchange Rate Slumps amid Risk-On Mood
The Pound to New Zealand Dollar (GBP/NZD) exchange rate also fell heavily overnight, with improved risk appetite boosting the appeal of the ‘Kiwi’.