Pound (GBP) Weakens Following Leaders Debate
The Pound (GBP) fell back yesterday as markets reacted to the first election debate between Boris Johnson and Jeremy Corbyn.
While neither Johnson nor Corbyn came out ahead, with the audience appearing equally split on their performance, Johnson was seen as having the most to lose from the debate.
On the data front the Confederation of British Industry’s (CBI) industrial trends orders showed a better-than-expected pick-up in manufacturing activity this month, although not enough to fill GBP investors with confidence.
Looking ahead, UK politics will remain front and centre today, potentially infusing further volatility into the Pound.
GBP/EUR Exchange Rate Subdued on Hopes of Fiscal Stimulus
The Pound Euro (GBP/EUR) exchange rate was put on the back foot during Tuesday session as a number of European Central Bank (ECB) officials sought to talk up fiscal stimulus.
Slovenian ECB President Bostjan Vasle suggested that the bank’s recent stimulus package was working, but that it would require more fiscal support from governments if the Eurozone was to improve its growth outlook.
Coming up this morning we have the release of the ECB’s financial stability review. The report may prompt some EUR movement depending on the bank’s assessment of risks to the Eurozone.
GBP/USD Exchange Rate Muted amidst US-China trade Pessimism
The Pound to US Dollar (GBP/USD) exchange rate was left mostly rangebound on Tuesday as the ‘Greenback’ continued to struggle as a result of US-China trade uncertainty.
Hopes of the two-powers signing a preliminary trade deal in the near-term continued to fade yesterday, weakening US treasury yields and dragging on USD exchange rates.
In the spotlight today we have the publication of the minutes from the Federal Reserve’s October policy meeting. These could drag on the US Dollar if they indicate the bank may be open to more rate cuts in 2020.
GBP/CAD Exchange Rate Jumps as Oil Prices Slip
The Pound to Canadian Dollar (GBP/CAD) exchange rate traded higher yesterday as the oil-sensitive ‘Loonie’ was undermined by a 1% drop in crude prices.
On the docket today is Canada’s consumer price index, which may help to bolster CAD if inflation rebounded in October as expected.
GBP/AUD Exchange Rate Slumps in Spite of Trade Concerns
The Pound to Australian Dollar (GBP/AUD) exchange rate tumbled by around a cent on Tuesday, with the risk-sensitive ‘Aussie’ able to take advantage of Sterling’s weakness in spite of renewed trade uncertainty.
GBP/NZD Exchange Rate Dips as Diary Prices Climb
The Pound to New Zealand Dollar (GBP/NZD) exchange rate fell over half a cent on Tuesday as the ‘Kiwi’ was buoyed by another solid increase in dairy prices at the latest global auction.