GBP Exchange Rate News: Pound Side-lined by Political Uncertainty

Pound (GBP) Flat as Election Uncertainty Continues

The Pound (GBP) traded sideways at the end of last week, with the continued focus on the upcoming UK election leaving the currency mostly directionless.

Boris Johnson faced criticism on Friday as he was accused of dodging scrutiny over his reluctance to hold an interview with the BBC’s Andrew Neil, with GBP investors wary about how this may impact his standing with voters.

UK politics will continue to act as a key catalyst of movement this week, potentially stirring up some volatility depending on how well the Conservatives fare in the polls.

 

GBP/EUR Exchange Rate Steady, Markets Shrug off Uptick in Eurozone Inflation

The Pound Euro (GBP/EUR) exchange rate remained steady throughout Friday’s trading session, with the publication of the Eurozone’s consumer price index failing to inspire any EUR buying.

While inflation accelerated at a faster-than-expected pace in November, rising from 0.7% to 1%, it wasn’t believed to be enough to alleviate the pressure on the European Central Bank (ECB) to continue tweaking monetary policy in 2020.

Looking ahead, the Euro could find some modest support today if the Eurozone’s PMI figures confirm that the contraction in the bloc’s manufacturing sector lightened in November.

 

GBP/USD Exchange Rate Slips on Broad USD Strength

The Pound to US Dollar (GBP/USD) exchange rate trended lower at the end of last week’s session as a risk-off mood in markets turned traders bullish towards the ‘Greenback’.

This came as a clash between Washington and Beijing over Hong Kong showed no signs of abating, casting doubts on the possibility of a US-China trade deal being signed by the end of 2019.

On the docket for USD investors at the start of this week will be the ISM manufacturing PMI, which could see traders sour on the US Dollar if it reveals the US factory sector suffered its fourth consecutive contraction in November.

 

GBP/CAD Exchange Rate Muted as Canadian GDP Slows

The Pound to Canadian Dollar (GBP/CAD) exchange rate remained mostly rangebound through Friday’s session in the wake of Canada’s latest GDP figures.

These showed that growth slowed sharply in the third quarter, falling from 0.9% to 0.3%, with a modest 0.1% start to the fourth quarter in October.

 

GBP/AUD Exchange Rate Weakens on Positive Chinese Data

After striking a fresh three-year high at the end of last week’s session, the Pound to Australian Dollar (GBP/AUD) exchange rate is on the retreat this morning as the ‘Aussie’ was bolstered by some upbeat PMI data from China.

Looking ahead, the Reserve Bank of Australia (RBA) will hold its latest policy meeting later tonight, potentially cutting the AUD rally short if the bank hints that it may continue to ease monetary policy in 2020.

 

GBP/NZD Exchange Rate Tumbles as Markets go Risk-On

The Pound to New Zealand Dollar (GBP/NZD) exchange rate is also retreating this morning as improved market risk-appetite bolstered the appeal of the ‘Kiwi’.

Matthew Andrews

Contact Matthew Andrews


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