Pound (GBP) Rallies on Revised GDP Figures
The Pound (GBP) ended last week on a high, recouping some of its losses from earlier in the session on the back of upbeat GDP figures as growth was revised up from 0.3% to 0.4% in the third quarter.
The announcement that Andrew Bailey will be the next Governor of the Bank of England (BoE) also lent support to Sterling, with GBP investors welcoming Bailey as a ‘safe pair of hands’.
Friday also saw Boris Johnson’s EU withdrawal bill easily pass through parliament, but with investors still wary about a possible no-deal Brexit next year it failed to inspire any upside in GBP exchange rates.
The Pound is likely to find itself mostly directionless this week as the absence of any notable data and the closure of UK markets for Christmas and Boxing Day limits volatility.
GBP/EUR Exchange Rate Jumps as Eurozone Consumer Sentiment Tumbles
The Pound Euro (GBP/EUR) exchange rate raced higher at the end of last week’s session amid an aggressive sell-off of the single currency.
The slump came as Eurozone consumer confidence index came in at -8.1 in December, its lowest reading since 2017.
Similarly to the Pound, there is a lull in Eurozone economic data this week, likely stifling movement in the Euro in thin pre-holiday trade.
GBP/USD Exchange Rate Gains Trimmed by Upbeat US Data
The Pound to US Dollar (GBP/USD) exchange rate edged higher on Friday but found its gains capped by a stronger-than-expected PCE price index.
As the Federal Reserve’s preferred indicator for inflation, the surprise uptick in the index in November buoyed the ‘Greenback’ as it lowered expectations for a rate cut from the bank next year.
Coming up this week, we may see the US Dollar strengthen if US durable goods orders are shown to have risen again in November, easing concerns about a slump in the US manufacturing sector.
GBP/CAD Exchange Rate Rallies on Abysmal Canadian Retail Sales
The Pound to Canadian Dollar (GBP/CAD) exchange rate bounced back from a three-week low on Friday as Canada’s latest retail sales print made for some grim reading.
Statistics Canada reported sales growth contracted from -0.1% to an eleven-month low of -1.2% in October, well short of expectations sales growth would accelerate by 0.5%.
GBP/AUD Exchange Rate Tumbles on Falling Odds of RBA Rate Cut
The Pound to Australian Dollar (GBP/AUD) exchange rate slumped to a new one-month low at the end of last week’s session in response to the weakening odds of a rate cut from the Reserve Bank of Australia (RBA).
GBP/NZD Exchange Rate Gains Trimmed By Trade Hopes
The Pound to New Zealand Dollar (GBP/NZD) exchange rate made an abortive attempt to rally on Friday as the ‘Kiwi’ was buoyed by hopes a US-China trade deal may be imminent.