Pound (GBP) Fails to Stabilise at Post-Election Highs
The Pound (GBP) fell victim to its own success at the end of last week’s session, with GBP investors seeking to book their profits after a dramatic surge in Sterling overnight on Thursday.
This jump in the Pound was bought on by the Conservative’s commanding victory in the General election, which was cheered by GBP investors hoping it will some clarity to Brexit.
All eyes will be on Boris Johnson again this week as the PM is expected to table his Brexit deal for a vote by then end of the week as he attempts to ratify it before Christmas.
On top of that we have the publication of the UK’s latest PMI figures later this morning, with another gloomy reading potentially weighing on Sterling sentiment.
GBP/EUR Exchange Rate Slides in Spite of Eurozone Growth Fears
The Pound Euro (GBP/EUR) exchange rate fell by around half a cent on Friday, mostly as a result of broad weakness in Sterling.
In wider trade the Euro was mostly rangebound, with concerns over slowing growth in the Eurozone limiting the appeal of the single currency.
In the spotlight for EUR investors this week will be the publication of the Eurozone’s PMI figures later this morning. Will an improvement in private sector growth lend some support to the Euro through today’s session?
GBP/USD Exchange Rate Tumbles on Trade Deal Hopes
The Pound to US Dollar (GBP/USD) exchange rate fell sharply at the end of last week as it was announced that the US and China had reached a phase one trade deal.
The news was cheered by USD investors, who hope it will help to reverse a slowdown in domestic growth and weaken the case for the Federal Reserve to continue easing monetary policy in 2020.
On the docket for USD investors today will be the publication of the Empire State Manufacturing Index, with a modest rise in factory activity potentially buoying the US Dollar this afternoon.
GBP/CAD Exchange Rate Slumps on Bullish Oil Prices
The Pound to Canadian Dollar (GBP/CAD) exchange rate shed around a cent of its post-election gains on Friday as the ‘Loonie’ was underpinned by robust oil prices as Brent crude climbed over $65 a barrel.
GBP/AUD Exchange Rate Fluctuates on Trade Speculation
The Pound to Australian Dollar (GBP/AUD) exchange rate traded in a wide range at the end of last week’s session, with the ‘Aussie’ rocked by the announcement that a US-China trade deal had been reached.
Looking ahead, the minutes from the Reserve Bank of Australia’s (RBA) December policy meeting will be eyed by AUD investors later tonight as they search for any additional signs that the bank will continue to ease monetary policy in 2020.
GBP/NZD Exchange Rate Rocked by Trade Headlines
Movement in the Pound to New Zealand Dollar (GBP/NZD) exchange rate largely mirrored that of GBP/AUD on Friday, with the ‘Kiwi’ initially jumping on reports of a US-China trade deal, but subsequently losing ground due to a lack of details.