The Pound (GBP) rose against the majority of its peers this morning as investors await a vote on the government’s Brexit repeal bill later today.
The bill is designed to enshrine current EU laws into British statute, which the government claims will help ease the transitions and avoid a ‘chaotic’ Brexit.
However the bill still faces stiff opposition from Labour as they contest that the bill will grant the government the power to change existing laws without facing the scrutiny of Parliament, which they fear amounts to a ‘power grab’ by Prime Minister Theresa May.
The Pound Euro (GBP EUR) exchange rate got off to a strong start this week as the pairing jumped on hopes that the pass of the Brexit repeal bill will help take some of the uncertainty out of the transition period.
Meanwhile, the single currency was undermined this morning by the release of Italy’s latest industrial production figures as output grow slowed from 1.1% to 0.1% in July.
However, the main focus for EUR investors this week is likely to be a number of speeches by European Central Bank (ECB) members as markets hope to hear more about the bank’s plans to begin winding down its stimulus programme.
Sterling is currently trending in a narrow range against the US Dollar (USD) today as a rise in market risk appetite drives investors towards high-yield currencies.
The jump in risk sentiment comes after North Korea refrained from further missile tests, with markets fearing that geopolitical tensions may have shot up again should the secretive nation mark its 69th anniversary by launching more missiles or even conducting another nuclear test.
USD investors are also hesitant in the face of Hurricane Irma as they wait to see the extent of economic damage caused by the storm.
The Pound Canadian Dollar (GBP CAD) exchange rate slipped by around half a cent this morning as oil prices edged slightly higher following suggestions that Saudi Arabia may seek to extend the current OPEC pact to cut oil production.
Sterling climbed to a new four-week high against the Australian Dollar (AUD) this morning as a rout in commodity prices caused investors to shy away from the ‘Aussie’ despite the rise in risk appetite.
New Zealand Dollar
The Pound New Zealand Dollar (GBP NZD) exchange rate also climbed to a new multi-week high this morning as further political uncertainty ahead of the upcoming general election forced the ‘Kiwi’ to retreat once again.
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