The Pound (GBP) was able to end a two day run of losses yesterday as the UK’s latest Services PMI unexpectedly rose in September.
Sterling was unable to make any notable gains however as the accompanying report showed that business growth fell to a 13-month low, with analysts warning that this may negatively impact the UK’s future economic output.
Meanwhile, the Pound has dropped sharply this morning as markets become increasingly concerned by reports that Theresa May is facing an uprising in her own party, with Boris Johnson supposedly lining himself up for a leadership challenge.
The Pound Euro (GBP EUR) exchange rate fell to a new three-week low this morning as ongoing political uncertainty weighed on the pairing.
The single currency did see some losses on Wednesday however as the Eurozone saw a -0.6% decline in retail sales in August, disappointing investors who had expected sales to have grown by 0.3%.
Meanwhile, the Euro’s movement later this afternoon is likely to be driven by the release of the minutes from the European Central Bank’s (ECB) latest policy meeting, as analysts pour over the accounts for any indication that the bank may tighten monetary policy in the near future.
Sterling struggled to gain against the US Dollar (USD) yesterday as America’s own services PMI rocketed past expectations, pushing the ‘Greenback’ higher.
Despite the disruptions caused by Hurricanes Harvey and Irma earlier in the month, the index jumped from 55.3 to 59.8, sailing past expectations of a modest rise to 5.5 and reaching its best levels since 2004.
The US Dollar may advance even further this afternoon with the release of the latest US trade balance figures as economists forecast that the nation’s trade deficit will have narrowed slightly in August.
The Pound Canadian Dollar (GBP CAD) exchange rate also failed to stabilise on Wednesday with investors quickly shying away from Sterling as the uptick in the UK’s service PMI was undermined by the negative outlook from economists.
Sterling found some fleeting gains against the Australian Dollar (AUD) overnight on Wednesday as the ‘Aussie’ was weakened by a sharp decline in retail sales in August, with sales also being revised down from the month before.
New Zealand Dollar
Growing fears that Theresa May’s critics may be plotting her downfall saw the Pound New Zealand Dollar (GBP NZD) exchange rate tumble this morning, with investors fearing that any division in the Tory government will weaken the UK’s position in Brexit talks.
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