Best Exchange Rates

Sterling Rallies after Politically Fuelled Sell-Off, But Will its Gains Prove to be Short Lived?

Categories: AUD, CAD, EUR, GBP, Markets, News, NZD, USD


The Pound (GBP) nosedived at the start of the week’s session, as mounting political pressure on Theresa May and reports of a possible leadership contest shook market confidence in the UK currency.

However Sterling began to claw back some of its losses by the afternoon as it became clear that Tory MP’s were reluctant to oust the Prime Minister at a time when Labour is surging in the polls.

Meanwhile the Pound may find itself tumbling again later today, with the release of the UK’s latest CPI figures as the Bank of England’s (BoE) recent vote to raise interest rates may leave markets less welcoming of another rise in inflation.


The Pound Euro (GBP EUR) exchange rate slumped yet again this morning although this time being driven lower by some impressive economic data from the Eurozone.

Germany’s latest GDP estimate revealed today that Europe’s largest economy expanded at a blistering pace in the third quarter, as growth jumped to 0.8%, flying past expectations that growth would hold at 0.6%.

The stronger than expected reading may also help to bump up the latest Eurozone GDP estimate when it is released later this morning, with the single currency likely to surge again if growth in the bloc beats expectations.

US Dollar

Sterling was able to rally by around half a cent against the US Dollar (USD) from its worst levels on Monday as political uncertainty in the UK began to fade.

However the pairing’s struggled to push any higher with the ‘Greenback’ stabilising in advance of some important US economic data later this week, the most notable of which be tomorrow’s inflation data, with an expected drop in inflation likely to pin back hopes for further rate hikes from the Federal Reserve next year.

Canadian Dollar

After initially tumbling yesterday the Pound Canadian Dollar (GBP CAD) exchange rate was able to recoup the majority of its losses overnight as a dip in oil prices helped to support Sterling’s recovery.

Australian Dollar

While Sterling was able to mount a recovery against the Australian Dollar (AUD) late on Monday the pairing’s gains proved to be short lived overnight as a surprise uptick in Australia’s latest business confidence index helped to lift the ‘Aussie’.

New Zealand Dollar

The Pound New Zealand Dollar (GBP NZD) exchange rate’s recovery meanwhile appears to be holding this morning as weak commodity prices weigh heavily on the ‘kiwi’.

TorFX Author: TorFX

“Our company’s mission is to provide outstanding exchange rates, expert guidance and a simple, friendly service that people will want to recommend to others.” – Jon Beddell (CEO). Contact TorFX for an FX Quote – UK & Europe – Australia & NZ.

Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product. Full Disclaimer

BER Newsletter

Subscribe for the latest exchange rates, currency news and special offers directly to your inbox.

Best Exchange Rates - We make it Easy to Compare Exchange Rates & Fees of Banks and Currency Exchange & Payment Providers

Level 2, AMP Tower, 50 Bridge Street, Sydney, NSW 2000, Australia

Disclaimer | Copyright | Privacy Statement


Best Exchange Rates is an information only service. By browsing on the website, using our comparison tools or FX provider referral service, you are asking Best Exchange Rates to provide you with information about currency exchange products & services from multiple financial institutions.

We will try to show you a range of products & services in response to your request for information. The search results do not include all providers and may not compare all features relevant to you. In giving you product information we are not making any suggestion or recommendation to you about a particular product.

If you decide to conduct foreign exchange you will deal directly with a financial institution, and not with Best Exchange Rates. Rates and product information should be confirmed with the relevant financial institution, see our terms of use for further details.

Best Exchange Rates may receive fees or other benefits in relation to activity on the Best Exchange Rates website. Best Exchange Rates may receive remuneration for vendor referral links. Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.

Read our Full Terms of Service


This website and its contents are the copyright of BEST EXCHANGE RATES PTY LTD © 2009-17. All rights reserved.

Any redistribution or reproduction of part or all of the contents in any form is prohibited other than the following. You may print or download contents to a local hard disk for your personal and non-commercial use only. You may copy some extracts only to individual third parties for their personal use, but only if you acknowledge the website as the source of the material.

You may not, except with our express written permission, distribute or commercially exploit the content. You may not transmit it or store it on any other website or other form of electronic retrieval system.

For more details or request distribution right please contacxt us here.