Pound (GBP) Slips as UK Services PMI Tumbles to a 40-Month Low
The Pound (GBP) closed last week’s session on the back foot following the publication of the UK’s latest PMI figures.
These revealed a shock slump in the UK’s all-important service sector in November, which stoked speculation that UK GDP is on track to contract in the fourth quarter.
Looking to the week ahead, expect UK politics to act as the main catalyst of movement, with the recent launch of the Conservatives’ election manifesto set to be a key focus for markets.
GBP/EUR Exchange Rate Losses Trimmed by Lagarde Speech
The Pound Euro (GBP/EUR) exchange rate slipped around half a cent on Friday, but was prevented from falling further following Christine Lagarde’s first speech as European Central Bank (ECB) President.
While Lagarde echoed her predecessor’s calls for more fiscal stimulus, markets appeared unconvinced that her speech will do much to convince members of the Eurozone to begin loosening their purse strings.
In focus for EUR investors this week will be the Eurozone’s latest CPI figures, with another gloomy inflation reading potentially sending the Euro lower.
GBP/USD Exchange Rate Slumps as US Consumer Sentiment Improves
The Pound to US Dollar (GBP/USD) exchange rate plummeted at the end of last week’s session in response to a robust US consumer sentiment index.
The index struck its best levels since July as household confidence was buoyed by solid wage growth and reduced mortgage rates.
Coming up this week, the latest US durable goods order figures may drag on the US Dollar if orders continued to contract in October.
GBP/CAD Exchange Rate Tumbles Following Canadian Retail Sales Figures
The Pound to Canadian Dollar (GBP/CAD) exchange rate dropped around a cent on Friday as markets welcomed Canada’s latest retail sales figures.
While headline sales unexpectedly contracted in September, CAD investors cheered a stronger-than-expected rebound in core sales.
GBP/AUD Exchange Rate Nosedives on US-China Trade Hopes
The Pound to Australian Dollar (GBP/AUD) exchange rate plummeted at the end of last week, shedding over a cent as markets went risk-on.
This was spurred by renewed US-China trade optimism after President Donald Trump told Fox News that a deal with China is ‘potentially very close’.
GBP/NZD Exchange Rate Collapses amid Rising Risk Appetite
The Pound to New Zealand Dollar (GBP/NZD) exchange rate slumped to a one-month low on Friday in response to Trump’s upbeat comments on trade.
This uptrend in the ‘Kiwi’ may persist through the start of this week as well, with New Zealand expected to report a sharp uptick in retail sales growth in the third quarter.