Pound (GBP) Muted as Labour Plays Catch Up
The Pound (GBP) struggled to find support at the start of this week’s session in response to reports that Labour is catching up to the Conservatives in the polls.
Also limiting the appeal of Sterling yesterday was the UK’s manufacturing PMI, which revealed a worrying drop in employment in the factory sector last month.
On top of the ongoing political uncertainty, GBP exchange rates may also be influenced by the UK’s construction PMI this morning. Will another slump in the construction sector weaken the Pound?
GBP/EUR Exchange Rate Slumps on Broad USD Weakness
The Pound Euro (GBP/EUR) exchange rate fell on Monday as the single currency benefited from a US Dollar (USD) sell-off.
However, these gains were capped as the European Central Bank’s Christine Lagarde warned that Europe’s economic growth continues to be threatened by global risks.
The Euro may struggle to extend gains today following the announcement that the US is seeking to impose 100% tariffs on a number of key French exports in retaliation to France’s new digital services tax.
GBP/USD Exchange Rate Stable as US Manufacturing PMI Disappoints
The Pound to US Dollar (GBP/USD) exchange rate was left rangebound yesterday as the ‘Greenback’ was undermined by another gloomy factory PMI.
The ISM manufacturing PMI edged down to 48.1 in November, the US factory sector’s fourth consecutive contraction, and highlighted a steep decline in new orders and employment.
In the absence of any notable US economic data today, the focus for USD investors will be on US-China trade headlines, with suggestions that a phase one deal may be close potentially weighing on the US Dollar.
GBP/CAD Exchange Rate Steady Despite Oil Rebound
The Pound to Canadian Dollar (GBP/CAD) exchange rate traded in a narrow range through Monday’s session as the oil-sensitive ‘Loonie’ failed to find support in spite of crude prices jumping over 1%.
GBP/AUD Exchange Rate Tumbles as RBA Leaves Rates on Hold
The Pound to Australian Dollar (GBP/AUD) exchange rate fell over half a cent overnight on Monday after the Reserve Bank of Australian (RBA) kept rates on hold and suggested downside risks are weakening.
AUD investors will be kept on their toes later tonight with the publication of Australia’s latest GDP figures, with any signs of a slowing economy likely weaken the currency.
GBP/NZD Exchange Rate Slumps to Six-Week Low
The Pound to New Zealand Dollar (GBP/NZD) exchange rate plummeted over two cents at the start of this week as the ‘Kiwi’ benefited from a strong uptick in market risk-appetite.
09:30 GBP Construction PMI (Nov)
15:30 NZD Global Dairy Auction
00:30 AUD GDP (Q3)