Pound (GBP) Sinks Following Dovish BoE Meeting
The Pound (GBP) faced a broad sell-off on Thursday in response to the Bank of England’s (BoE) latest rate decision.
While no policy changes were made by the bank this month, the decision by two members to vote for a rate cut shocked markets.
Alongside the cautious tone struck by BoE Governor Mark Carney in his accompanying post-meeting press conference, this weighed heavily on GBP exchange rates.
The weakness in GBP may persist through to the end of week as the looming general election continues to cast a shadow over Sterling.
GBP/EUR Exchange Rate Losses Capped by Gloomy German Data
The Pound Euro (GBP/EUR) exchange rate trended lower yesterday, but was prevented from consolidating at its worst levels in light of some disconcerting German data.
German industrial production fell faster than expected in September, undermining Wednesday’s upbeat factory order figures and reigniting fears for a third quarter recession in the Eurozone’s largest economy.
Some upbeat German trade data looks set to buoy the Euro today however, with EUR investors welcoming a solid rebound in September exports.
GBP/USD Exchange Rate Slips to Two-Week Low amidst Persistent US Dollar Strength
The Pound to US Dollar (GBP/USD) exchange rate touched a two-week low yesterday as the ‘Greenback’ continued to enjoy wide-spread support.
This uptick in USD comes despite a pick-up in market risk appetite following news that the US and China have agreed to begin rolling back some tariffs as part of an impending trade deal.
Looking ahead, the US Dollar could maintain its upward trajectory today if US consumer confidence continues to improve this month.
GBP/CAD Exchange Rate Slumps as Oil Prices Surge
The Pound to Canadian Dollar (GBP/CAD) exchange rate fell around half a cent on Thursday as the oil-sensitive ‘Loonie’ was buoyed by a strong uptick in crude prices.
However the Canadian Dollar may struggle to cling to these gains today as an expected fall in employment growth in today’s jobs report will place more pressure on the Bank of Canada (BoC) to lower interest rates.
GBP/AUD Exchange Rate Slumps amidst Trade Deal Hopes
The Pound to Australian Dollar (GBP/AUD) exchange rate slumped to a three-week low on Thursday, with demand for the ‘Aussie’ buoyed by signs that the US and China are preparing to roll back some tariffs as part of an upcoming trade deal.
GBP/NZD Exchange Rate Dented by Risk-On Mood
The Pound to New Zealand Dollar (GBP/NZD) exchange rate also moved lower during yesterday’s session as US-China trade optimism boosted the appeal of the risk-sensitive ‘Kiwi’.