Pound (GBP) Rangebound as UK Election Campaign Begins
The Pound (GBP) was trading in a narrow range mid-week as the 2019 UK election campaign got into full swing and investors awaited an upcoming Bank of England meeting.
As the race to number 10 got underway, the focus was largely on the Conservatives as some early setbacks for the party dampened hopes of the Tories securing a majority in December.
Looking ahead, the focus will be on the Bank of England (BoE) today as it concludes its November policy meeting later this afternoon.
While no policy changes are expected from the bank this month, a more overt signal on potential rate cuts in 2020 could weaken Sterling.
GBP/EUR Exchange Rate Softens Following Upbeat Eurozone data
The Pound Euro (GBP/EUR) exchange rate drifted lower yesterday in response to some positive Eurozone data releases.
EUR exchange rates found modest support after a rebound in German factory orders smashed expectations in September and Eurozone retail sales were revised higher in August.
However, the Euro looks poised to relinquish some of these gains this morning after German industrial production figures painted a far less rosy picture of the country’s manufacturing sector.
GBP/USD Exchange Rate Staves off Further Losses on Dovish Fed Chatter
The Pound to US Dollar (GBP/USD) exchange rate was mostly rangebound on Wednesday, with the ‘Greenback’ failing to extend its recent gains following comments from New York Federal Reserve president John Williams.
Williams reaffirmed that the US inflation outlook will inform the Fed’s future monetary policy decisions and stated that ‘inflation pressures are very muted today’.
In the absence of any notable US economic data, the US Dollar may continue to trade narrowly today, with uncertainty over US-China trade likely limiting movement.
GBP/CAD Exchange Rate Buoyed as Ivey PMI Strikes Fresh Four-Year Low
The Pound to Canadian Dollar (GBP/CAD) exchange rate ticked higher during Wednesday’s session following the publication of Canada’s Ivey PMI.
The index revealed the contraction in Canada’s private sector deepened last month, with its worst reading since March 2015 denting the appeal of the ‘Loonie’.
GBP/AUD Exchange Rate Stable on Impressive Australian Trade Figures
The Pound to Australian Dollar (GBP/AUD) exchange rate remained flat overnight on Wednesday, with Australia’s larger-than-expected trade surplus shoring up the ‘Aussie’ against US-China trade uncertainty.
GBP/NZD Exchange Rate Buoyed by Trade Uncertainty
The Pound to New Zealand Dollar (GBP/NZD) exchange rate ticked up overnight as some conflicting trade headlines limited the appeal of the risk-sensitive ‘Kiwi’.