Pound (GBP) Muted Following Mixed Employment Figures
The Pound (GBP) was mostly rangebound on Tuesday thanks to a mixed UK labour report.
While markets welcomed a fall in the unemployment rate in September, they were less enthused by the shock fall in wage growth and vacancies which pointed to a cooling labour market.
Looking ahead, the publication of the UK CPI figures could dent Sterling sentiment this morning if inflation slowed in line with expectations last month.
GBP/EUR Exchange Rate Stable as Eurozone Economic Outlook Improves
The Pound Euro (GBP/EUR) exchange rate traded flatly yesterday as markets digested the Eurozone’s latest ZEW economic survey.
This showed a marked improvement in economic sentiment in the bloc, as optimism over Brexit and US-China trade talks was welcomed by economists.
Coming up this morning we have the publication of the Eurozone’s latest industrial production figures, which could exert some pressure on the Euro if factory output fell in the bloc in September.
GBP/USD Exchange Rate Fluctuates as Trump Speech Spooks Markets
The Pound to US Dollar (GBP/USD) exchange rate traded in a wide range on Tuesday, largely in response to a speech by US President Donald Trump.
Speaking at the Economic Club of New York, Trump said he was prepared to impose more ‘substantial’ tariffs on China if an interim deal is not reached.
The US Dollar is likely to be centre stage today, with the latest US inflation figures as well as Federal Reserve Chair Jerome Powell’s testimony in front of Congress.
USD investors will be keeping a close eye on both events as they look to gauge the likelihood of the Fed continuing monetary easing in 2020.
GBP/CAD Exchange Rate Dips as Oil Prices Rise
The Pound to Canadian Dollar (GBP/CAD) exchange rate edged lower during yesterday’s session as the oil-sensitive ‘Loonie’ was boosted by a 1% rally in crude prices.
GBP/AUD Exchange Rate Steady as Australian Wage Growth Undershoots Expectations
The Pound to Australian Dollar (GBP/AUD) exchange rate traded in a narrow range overnight on Tuesday as an underwhelming third quarter wage price index from Australia prevented the ‘Aussie’ from rallying alongside the New Zealand Dollar.
Looking ahead, AUD exchange rates may retreat later tonight as economists expect Australia’s latest jobs report to show that domestic unemployment rose in October.
GBP/NZD Exchange Rate Nosedives as RBNZ Surprises with Hawkish Rate Decision
The Pound to New Zealand Dollar (GBP/NZD) exchange rate fell sharply overnight, plummeting over two cents in response to the Reserve Bank of New Zealand’s (RBNZ) latest rate decision.
RBNZ policymakers shocked markets by keeping rates on hold this month. With the majority of investors having already priced in a rate cut this prompted a dramatic upswing in the ‘Kiwi’.