Pound (GBP) Bolstered by Election Speculation
The Pound (GBP) remained well supported on Thursday, as rising bets for a landslide Conservative victory kept traders bullish on the UK currency.
GBP investors are hoping that a Tory majority will help to remove some short-term uncertainty by finally ratifying Boris Johnson’s EU withdrawal agreement.
However, any further upside in Sterling this week looks limited, with the risk that the election could still result in a hung parliament keeping the currency from entering overbought territory.
GBP/EUR Exchange Rate Steady amid Gloomy Eurozone Data
The Pound Euro (GBP/EUR) exchange rate held close to a 31-month high yesterday as the single currency was undermined by some underwhelming economic data.
Both German factory orders and Eurozone retail sales unexpectedly contracted in October, casting further gloom over the outlook for the bloc.
The Euro may remain muted through today’s session as well after data published earlier this morning revealed German industrial production also weakened in October.
GBP/USD Exchange Rate Refreshes Seven-Month High
The Pound to US Dollar (GBP/USD) exchange rate touched a new seven-month high on Thursday amid a broad sell-off of USD.
However the ‘Greenback’ was later able to push back from its worst levels after US economic data confirmed that domestic factory orders returned to growth in October.
In the spotlight today we have the publication of the highly-influential US payroll report.
While economists are forecasting a healthy jump in payroll numbers last month, a miserable ADP employment report earlier in the week has cast some doubts over this. A disappointing payroll release could send the US Dollar sharply lower this afternoon.
GBP/CAD Exchange Rate Muted As Oil Prices Rise Ahead of OPEC Meeting
The Pound to Canadian Dollar (GBP/CAD) exchange rate was subdued through yesterday’s session, with the ‘Loonie’ buoyed by a modest uptick in oil prices on hopes OPEC will agree to extend production cuts.
Potentially lending some further support to CAD exchange rates today will be Canada’s latest labour report, which is forecast to show employment growth rebounded in November.
GBP/AUD Exchange Rate Surges on US-China Trade Uncertainty
The Pound to Australian Dollar (GBP/AUD) exchange rate refreshed a three-year high on Thursday as the ‘Aussie’ was undermined by growing uncertainty on when a phase one trade deal between the US and China may be reached.
GBP/NZD Exchange Rate Rallies as Market Risk Appetite Sours
Movement in the Pound to New Zealand Dollar (GBP/NZD) exchange rate largely mirrored that of GBP/AUD yesterday as the appeal of the ‘Kiwi’ was also dented by US-China trade concerns.