Pound (GBP) Stabilises as UK Election Gets Underway
The Pound (GBP) ticked higher mid-week, recouping most of Tuesday’s losses in spite of UK opinion polls pointing to a narrowing gap between the Conservatives and Labour.
This tentative recovery came amid rising concern for a hung parliament, after recent polls suggested such an outcome remains within the margin of error.
GBP investors are likely to refrain from making any bullish bets today as they await the outcome of the UK election. Expect Sterling to trade sideways until the exit poll is published at 22:00 GMT.
GBP/EUR Exchange Rate Rallies as Outlook for European Banks Turns Negative
The Pound Euro (GBP/EUR) exchange rate ticked higher on Wednesday, aided by the publication of Moody’s latest outlook report for European banks.
This saw the rating’s agency downgrade its outlook for Europe’s banks from stable to negative as it cited weakening economic growth and the European Central Bank’s (ECB) accommodative monetary policy as negatively impacting bank’s profitability.
Looking ahead the Euro could draw some focus away from the UK election as the ECB concludes its final policy meeting of 2019.
While no policy changes are expected from the bank this month, this will mark Christine Lagarde’s first rate decision at the helm of the bank and EUR investors will be interested to hear her thoughts on the bank’s policy plans for 2020.
GBP/USD Exchange Rate Surges as Fed Signals Rates will Remain on Hold Through 2020
The Pound to US Dollar (GBP/USD) exchange rate struck a fresh seven-month high yesterday evening in response to the Federal Reserve’s latest rate decision.
As expected the Fed left monetary policy untouched this month. However the US Dollar still weakened after Fed Chairman Jerome Powell signalled rates were likely to remain on hold through 2020.
Coming up today we have the publication of the latest US PPI figures, which could weigh on the US Dollar if producer prices slowed in November as forecast.
GBP/CAD Exchange Rate Bolstered by Sliding Oil Prices
The Pound to Canadian Dollar (GBP/CAD) exchange rate ticked higher on Wednesday as the oil-sensitive ‘Loonie’ was undermined after crude prices were dented by a surprise rise in US oil inventories.
GBP/AUD Exchange Rate Rallies as Trade Concerns Weigh
The Pound to Australian Dollar (GBP/AUD) exchange rate bounced back from a one-week low overnight on Wednesday as the ‘Aussie’ was dented by renewed US-China trade jitters.
GBP/NZD Exchange Rate Rebounds amid Risk-Off Mood
The Pound to New Zealand Dollar (GBP/NZD) exchange rate crept higher in overnight trade, with the ‘Kiwi’ being undermined by market risk aversion in light of UK political uncertainty and US-China trade concerns.