Pound Exchange Rates Volatile, GBP Fluctuations Forecast as Brexit Talks Hang in the Balance

Pound (GBP) Bolstered by Brexit Deal Hopes

The Pound (GBP) pushed higher again at the end of last week, bolstered by hopes that a Brexit deal was close.

Despite a French minister warning that his country would be willing to veto a deal if it did not satisfy their demands, GBP investors focused on suggestions from an EU source that an agreement was ‘imminent’.

Looking ahead, its likely we could see more Brexit-driven volatility at the start of this week as today is widely seen as the cut-off date for a deal.

Euro (EUR) Undermined by Profit Taking

After relentlessly pushing higher earlier in the week, the Euro (EUR) started to run out of momentum on Friday as the single currency fell victim to some profit taking at the end of the session.

This offset the release of Germany’s latest factory order figures, where a stronger-than-expected uptick in order growth may have otherwise bolstered EUR exchange rates.

The focus for EUR investors this week will be on the latest European Central Bank (ECB) policy meeting, in which the bank is widely expected to announce an expansion to its monetary stimulus programme.

US Dollar (USD) Sinks on Lacklustre Payroll Release

The US Dollar (USD) closed last week on a low after the latest US non-farm payroll report printed well below expectations.

With the US jobs market only adding 245,000 jobs in November, down from 610,000 in October, USD investors expressed their concern about the state of the US economy as domestic coronavirus cases spike.

Turning to this week, the US Dollar could extend losses if the market mood remains upbeat. 

Canadian Dollar (CAD) Firms on Upbeat Employment Figures

The Canadian Dollar (CAD) trended higher on Friday, with the ‘Loonie’ strengthening in response to Canada’s latest employment figures after domestic unemployment fell more sharply than expected in November.

Australian Dollar (AUD) Buoyed by Chinese Trade Data

The Australian Dollar (AUD) advanced at the start of this week’s session, bolstered by some upbeat Chinese trade figures.

New Zealand Dollar (NZD) Steady Ahead of Eventful Week

The New Zealand Dollar (NZD) was mostly rangebound overnight on Sunday, with NZD investors taking a breather ahead of what is likely to be quite a turbulent week for the currency market.