Pound (GBP) Soars as Johnson Secures Convincing Majority
After some trepidation through yesterday’s session amidst some last minute Brexit jitters, the Pound (GBP) exploded higher overnight as the exit poll predicted that the Tories were on track for their largest majority since Thatcher.
Sterling was immediately propelled to a three-year high as markets are now increasingly confident that a no-deal Brexit will be avoided next month.
However there are some signs that the Pound may be vulnerable to some profit taking this morning as it begins to give some ground.
GBP/EUR Exchange Rate Slips, Lagarde Claims to Be Neither an Hawk or a Dove
The Pound Euro (GBP/EUR) exchange rate edged lower during the European session yesterday as markets reacted to Christine Lagarde’s first policy meeting as President of the European Central Bank (ECB).
Lagarde for the most part offered few surprises yesterday, with the Euro climbing as the ECB kept rates on hold and revised its GDP forecast for 2019 slightly higher.
However Lagarde also made it clear that she did not wish to compared with her predecessors, claiming she will be a policy owl, ‘associated with a little bit of wisdom’ rather than a hawk or dove.
#Lagarde quote of the day. "I'm neither a hawk nor a dove… My ambition is to be an owl." pic.twitter.com/JpGYz7ebYy
— Joseph S. Mauro (@jsmauro13) December 12, 2019
Coming up today the only release of note will be Italy’s latest industrial figures, which a slight rise in industrial orders potentially prompting some modest gains in the Euro this morning.
GBP/USD Exchange Rate Climbs on Easing US-China Trade Tensions
The Pound to US Dollar (GBP/USD) exchange rate weakened on Thursday after US Treasury yields were buoyed by suggestions that the US and China may be close to a trade deal.
US President Donald Trump proclaimed on twitter the US is ‘getting very close to a big deal with China’ spurring the ‘Greenback’ higher.
Looking ahead, the US will publish its latest retail sales figures later this afternoon. Will rising sales growth in November help the US Dollar to close out the session on a high.
GBP/CAD Exchange Rate Softens as Oil Prices Jump
The Pound to Canadian Dollar (GBP/CAD) exchange rate fell back on Thursday as the ‘Loonie’ was propelled higher by a rebound in oil prices, with Brent Crude climbing back above $64 a barrel.
GBP/AUD Exchange Rate Tumbles on US-China Trade Hopes
The Pound to Australian Dollar (GBP/AUD) exchange rate moved sharply lower on Thursday in response to renewed US-China trade optimism.
GBP/NZD Exchange Rate Drops amid Risk-On Mood
The Pound to New Zealand Dollar (GBP/NZD) exchange rate also retreated on Thursday’s with the ‘Kiwi’ benefiting from renewed risk appetite in the wake of Trump’s trade comments.