Pound (GBP) Looks to GDP for Support amid Election Speculation
The Pound (GBP) was left trading in a narrow range at the end of last week’s session amid ongoing UK political uncertainty.
Speaking at the launch of the SNP’s election campaign, Nicola Sturgeon suggested her party would be willing to work with Labour to keep Boris Johnson out of Downing Street.
Kicking off this week’s session will be the release of the UK’s latest GDP estimate.
The data is expected to show that the UK avoided a recession, with the economy returning to growth in the third quarter. The Pound could strengthen if the data meets forecasts.
GBP/EUR Exchange Rate Strengthens Despite Upbeat German Data
The Pound Euro (GBP/EUR) exchange rate trended higher on Friday as markets appeared willing to overlook the publication of stronger-than-expected German trade figures.
The collective shrug from markets appears to come as economists still widely expect Germany to have slipped into a technical recession in the third quarter despite a robust expansion in exports in September.
These fears look set to be confirmed this week, with the Euro stumbling as Germany publishes its Q3 GDP report on Thursday.
GBP/USD Exchange Rate Stalls at Two-Week Low
The Pound to US Dollar (GBP/USD) exchange rate was left to trade at a two-week low on Friday as hopes of a rollback to tariffs between the US and China were dented by comments from Donald Trump.
Speaking to reporters, Trump said he hasn’t decided whether to ease tariffs on China yet, contradicting suggestions from Beijing that the two side had agreed to do so as part of a ‘phase 1’ trade deal.
In the coming week we may see the US Dollar move higher with the release of the latest US CPI figures, with an expected rise in inflation giving the Federal Reserve more room to leave interest rates on hold.
GBP/CAD Exchange Rate Jumps as Canadian Jobs Report Disappoints
The Pound to Canadian Dollar (GBP/CAD) exchange rate rallied almost half a cent on Friday in response to a gloomy jobs report from Canada.
Employment growth unexpectedly contracted last month, stoking speculation that the Bank of Canada (BoC) may soon be forced to begin cutting interest rates.
GBP/AUD Exchange Rate Rallies amid Trade Uncertainty
The Pound to Australian Dollar (GBP/AUD) exchange rate opened this week on strong footing, rising during the Asian session as the risk-sensitive ‘Aussie’ was undermined by fresh US-China trade uncertainty.
GBP/NZD Exchange Rate Flat Ahead of RBNZ Rate Decision
The Pound to New Zealand Dollar (GBP/NZD) exchange rate is trading in a narrow range at the start of this week, with investors reluctant to alter their positions ahead of the Reserve Bank of New Zealand’s (RBNZ) rate decision later in the week.