Pound (GBP) Muted as Inflation Slows
The Pound (GBP) was mostly rangebound through yesterday’s session as markets reacted to the UK’s latest CPI figures.
These showed that inflation slowed faster than expected in October, falling just short of a three-year low and bolstering expectations that the Bank of England (BoE) will begin lowering interest rates in the near-term.
Also limiting movement in Sterling was the continued political uncertainty in the UK.
The Pound may look to accelerate today however, with the UK’s retail sales report expected to show a modest rebound in sales growth last month.
GBP/EUR Exchange Rate Stable as German GDP Beats Expectations
The Pound Euro (GBP/EUR) exchange rate traded sideways on Wednesday, with the single currency unable to accelerate in spite of stronger-than-expected Eurozone industrial production figures.
Today’s focus will be on German GDP. While the general consensus was that Germany would slip into a recession in the third quarter, the figures surprised as they showed the country unexpectedly returned to growth.
However, any upside in the Euro still looks limited. While Germany may have avoided a recession its outlook is less than cheery.
GBP/USD Exchange Rate Subdued, Powell Testimony Offers no Surprise
The Pound to US Dollar (GBP/USD) exchange rate trended in a narrow range mid-week as Jerome Powell’s testimony in front of Congress didn’t offer any insights into the Federal Reserve’s policy plans.
The Fed Chairman mostly stuck to the script, reaffirming that the bank’s monetary policy will remain appropriate so long as economic indicators don’t deteriorate.
Today movement in the US Dollar may instead be dictated by market risk-sentiment, potentially boosting the safe-haven ‘Greenback’ amidst rising US-China trade uncertainty.
GBP/CAD Exchange Rate Steady as Oil Prices Stall
The Pound to Canadian Dollar (GBP/CAD) exchange rate remained flat on Wednesday, with the oil-sensitive ‘Loonie’ lacking direction as crude prices stalled at $62 a barrel.
GBP/AUD Exchange Rate Surges on Gloomy Australian Jobs Report
The Pound to Australian Dollar (GBP/AUD) exchange rate jumped almost a cent overnight on Wednesday in response to a disappointing Australian jobs report.
Unemployment climbed back to 5.3% last month following a shock slump in employment growth, stoking speculation of additional rate cuts from the Reserve Bank of Australia (RBA).
GBP/NZD Exchange Rate Buoyed by Risk-Off Mood
The Pound to New Zealand Dollar (GBP/NZD) exchange rate also trended higher overnight as continued US-China trade uncertainty and some soft Chinese data saw investors shy away from the risk-sensitive ‘Kiwi’.