Pound (GBP) Undermined by Hung Parliament Fears
The Pound (GBP) fell during yesterday’s trading session, coming under pressure as Labour was seen narrowing the gap with the Conservatives in opinion polls.
This stoked concerns the upcoming election could result in a hung parliament, resulting in GBP exchange rates being dented by fears the country could remain deadlocked over Brexit.
In the absence of any notable UK economic releases we expect election speculation to continue to dictate the direction of Sterling today.
GBP/EUR Exchange Rate Slumps despite Dovish ECB Comments
The Pound Euro (GBP/EUR) exchange rate slumped on Tuesday as broad weakness in Sterling offset some softness in the single currency.
This came as a result of comments from the European Central Bank’s (ECB) Francois Villeroy de Galhau who reaffirmed the bank’s commitment to low interest rates in order to sustain Eurozone growth.
Limited Eurozone data may keep the ECB in focus today, with EUR investors likely to pick apart a speech by the bank’s chief economist Philip Lane for any additional hints as to the ECB’s policy plans for 2020.
GBP/USD Exchange Rate Stumbles, Markets Sceptical on US-China Trade Progress
The Pound to US Dollar (GBP/USD) exchange rate slipped almost half a cent yesterday as demand for the safe-haven ‘Greenback’ was buoyed by US-China trade uncertainty.
While US and Chinese officials continued to suggest that a deal is close, traders are growing increasingly sceptical, with many expressing doubts that a ‘phase 1’ deal can be signed before the end of 2019.
Looking ahead, the US will publish its latest durable goods order figures later this afternoon. The data may cast USD exchanges lower if it indicates a slowdown in the US manufacturing sector persisted into the fourth quarter.
GBP/CAD Exchange Rate Slides as Oil Prices Accelerate
The Pound to Canadian Dollar (GBP/CAD) exchange rate trended lower on Tuesday, with the oil-sensitive ‘Loonie’ able to capitalise on Sterling weakness as crude prices climbed roughly 0.5% on the day.
GBP/AUD Exchange Rate Fluctuates Amid RBA Rate Cut Speculation
The Pound to Australian Dollar (GBP/AUD) exchange rate traded in a wide range overnight on Tuesday, with rising expectations of further monetary easing from the Reserve Bank of Australia (RBA) spooking investors.
GBP/NZD Exchange Rate Weakens as NZ Trade Figures Beat Expectations
The Pound to New Zealand Dollar (GBP/NZD) exchange rate trended lower overnight as the ‘Kiwi’ benefited from stronger-than-expected domestic trade figures.