Pound’s (GBP) Brexit Woes Persist
The Pound (GBP) remained on the back foot yesterday as lingering Brexit jitters continued to undermine the appeal of the UK currency.
This comes amidst rising fears of a no-deal Brexit in 2020, with JP Morgan warning the risk that the UK and EU failing to reach a trade deal by the end of the day is ‘uncomfortably high’.
On top of this, the UK’s latest CPI figures failed to inspire cheer amongst GBP investors yesterday as inflation was shown to have stalled at a three-year low in November.
Markets will be bracing for more Sterling losses in the wake of the Bank of England’s (BoE) rate decision later this afternoon, with the BoE expected to drop hints of a possible rate cut in 2020.
GBP/EUR Exchange Rate Stable in Spite of Upbeat German Business Sentiment
The Pound Euro (GBP/EUR) exchange rate was mostly rangebound through Wednesday’s trading session, with the single currency struggling to take advantage of Sterling’s weakness despite German business morale coming in higher than expected in December.
This came as the Euro was pressured by a resurgent US Dollar (USD), which stifled demand for the other half of the most traded currency pairing.
Looking ahead, with Eurozone economic data thin on the ground today we may see a speech by the European Central Bank’s Philip Lane drive movement in EUR exchange rates.
GBP/USD Exchange Rate Dives Amid Rise in US Treasury Yields
The Pound to US Dollar (GBP/USD) exchange rate struck a two-week low yesterday, amidst a strong pick-up in USD demand.
This jump in the ‘Greenback’ was fueled by higher treasury yields, but began to peter out later in the evening as the impeachment of US President Donald Trump unnerved some investors.
Drawing the attention of USD investors today will be the publication of the Philadelphia manufacturing index, where a modest slowing of factory growth in December could dampen demand for the US Dollar.
GBP/CAD Exchange Rate Tumbles on Robust Canadian CPI
The Pound to Canadian Dollar (GBP/CAD) exchange rate also sank to a fresh two-week low in the mid-week as the ‘Loonie’ was bolstered by a rebound in domestic inflation in October, which is expected to strengthen the case for the Bank of Canada (BoC) to leave rates on hold in the near-term.
GBP/AUD Exchange Rate Weakens on Upbeat Australian Jobs Report
The Pound to Australian Dollar (GBP/AUD) exchange rate was driven even lower overnight on Wednesday, as the ‘Aussie’ was buoyed by a stronger-than-expected domestic jobs report, which revealed a solid jump in employment growth and surprise dip in the unemployment rate last month.
GBP/NZD Exchange Rate Slumps on Upbeat NZ GDP
The Pound to New Zealand Dollar (GBP/NZD) exchange rate slumped to a two-month low overnight, as NZD investors welcomed New Zealand’s latest GDP figures after they revealed third quarter growth rose to 0.7%, beating forecasts of a more modest bump to 0.6%.