The Pound (GBP) continued struggling against it peers yesterday as Prime Minister Theresa May’s comments over the weekend and subsequent statement of ‘getting the best deal for the UK’ have done little to help clear up the government’s position on ‘Brexit’.
Sterling did managed to recover against some of the majors yesterday afternoon however as Labour Leader Jeremy Corbyn outlined his party’s desires for ‘Brexit’, which included staying in the single market and accepting some freedom of movement. Investors hope that this will put pressure on the government to accept a softer ‘Brexit’.
After reaching a new two-month yesterday morning the Pound Euro (EUR) exchange rate began to rally in the afternoon in advance of Corbyn’s speech.
Sterling could rise further later today following the release of the UK’s latest production stats, which are expected to show that Britain’s Manufacturing, Construction and Industrial sectors all saw growth in November after receding the month before.
Excluding the Sterling Flash Crash in October,‘Cable’ fell to its lowest levels in 31-years as GBP sentiment remained sour.
However the Pound appeared to stabilise in the afternoon as the US Dollar (USD) struggled to advance thanks to growing uncertainty over the incoming administration. While the overall market position is upbeat, investors are growing cautious over Donald Trump as his inauguration nears as there are still many questions left unanswered.
The Pound rallied by around a cent from its worst levels against the Canadian Dollar (CAD) on Tuesday as the continued decline in oil prices weighed on the ‘Loonie’. Crude prices continue to be battered by rumours that members of OPEC are failing to adhere to production cuts, while some analysts question if the cuts will even be enough to dent the global surplus.
The Pound began to rise against the Australian Dollar (AUD) yesterday in anticipation of the Jeremy Corbyn speech, however Sterling was unable to stabilise at its best levels and fell again overnight as the ‘Aussie’ was strengthened by a surge in iron ore prices.
New Zealand Dollar
The Pound New Zealand Dollar (NZD) exchange rate rallied over a cent yesterday as profit-taking allowed Sterling to advance. It was short-lived however as rising commodity prices caused the ‘Kiwi’ to appreciate again early on Wednesday morning.