The Pound (GBP) had a mixed day on Wednesday as persistent ‘Brexit’ concerns continued to drag on Sterling as the UK government allowed uncertainty to continue to fester due to its reluctance to publish its plans for leaving the EU.
UK data releases were also a mixed bag as despite production significantly rising in the Manufacturing, Construction and Industrial sectors, a notable rise in Britain’s trade deficit from £1.55bn to £4.17bn prevented GBP from rallying.
The Pound Euro (EUR) exchange rate trended flatly yesterday as souring Sterling sentiment was countered by claims the single currency could fall within 10 years.
French presidential candidate Emmanuel Macron claimed that without reforms the currency union that binds together the Eurozone could fail as it benefited some member states more than others.
Data later this morning could see GBP EUR fall further however as the Eurozone releases its latest Industrial Production figures, which are expected to show a rise from 0.6% to 1.5% in November.
‘Cable’ fell to its worst levels in 31-years (excluding the flash crash) on Wednesday as ‘Brexit’ continued weighing on the Pound.
However, Sterling’s fortunes were reversed in the afternoon as it rallied around two cents as Donald Trump’s first press conference since becoming president-elect didn’t go quite as planned.
Investors had hoped to hear more details about Trump’s economic policies and his plans for trade, but were instead treated to outbursts similar to those from his campaign as he lashed out at the media about unfounded reports on his dealings with Russia and his personal life causing the US Dollar (USD) to tumble.
The Pound Canadian Dollar (CAD) exchange rate was meet by increased volatility yesterday as the fluctuations in oil prices prevented the ‘Loonie’ from stabilising.
Sterling continued to downtrend against the Australian Dollar (AUD) yesterday, bringing the week’s losses so far to around 5 cents as the ‘Aussie’ continues to rise thanks to the weakened US Dollar and ballooning commodity prices, especially in Australia’s largest export, iron ore where prices continued to defy the odds and trade about $80 a tonne.
New Zealand Dollar
The New Zealand Dollar (NZD) also extended its gains against the Pound on Wednesday, reaching a new two-month high as rising risk appetite helped to drive demand for the ‘Kiwi’.