Pound Sterling (GBP) Exchange Rate Battered by Brexit Tension
The Pound (GBP) was forced further into submission yesterday, hitting its lowest levels in months against major peers like the US Dollar and Euro due to no-deal Brexit dread dominating market sentiment.
Jitters caused by the increasing likelihood of an unamicable UK-EU split have been exacerbated recently following pessimistic statements by Bank of England (BoE) Governor Mark Carney and International Trade Secretary Liam Fox, whose negativity is more pertinent in light of his previously stoic Brexit outlook.
Sterling may find itself continuing its downward trajectory today due to a lack of new UK data, meaning Brexit will continue to dominate investor confidence – or lack thereof – in GBP.
GBP/EUR Exchange Rate Plummets to Eleven-Month Low
The Pound Euro (GBP/EUR) exchange rate continued to haemorrhage value on Wednesday, losing over a cent this week and hitting its lowest rate since September 2017 due to Brexit uncertainty.
The Euro may be impacted today by the European Central Bank’s (ECB) latest economic bulletin. This is unlikely to differ broadly from the sentiment expressed by Mario Draghi in his recent address, but in light of some underwhelming Eurozone GDP figures the bulletin may stall the single currency’s gains.
Trade Tensions Force GBP/USD Exchange Rate Losses as Safe Haven Demand Increases
Ever-escalating US-China trade tensions again saw the Pound US Dollar (GBP/USD) exchange rate take a hit yesterday, recording a one-year low as safe haven demand skewed the currency pairing in favour of USD.
The White House is reported to have piled additional tariffs of $16bn onto Chinese goods, prompting a similar response from the Chinese government.
Unless tensions ease today, USD exchange rates can be expected to continue their upward trajectory throughout the session, with a projected lift in US housing figures likely to cement ‘Greenback’ gains.
GBP/CAD Exchange Rate Dips following Canada’s Quarrel with Saudi Arabia
Despite the sharp downtrend in the Pound Canadian Dollar (GBP/CAD) exchange rate on Wednesday, CAD’s upward trajectory was shallower against its peers in light of the escalating diplomatic spat between Canada and Saudi Arabia.
GBP/AUD Exchange Rate Plummets as Brexit Concerns Overshadow Trade Tensions
The Pound Australian Dollar (GBP/AUD) exchange rate slid to its lowest level in eight months yesterday, with GBP losses incited by Brexit ambiguity far exceeding losses to the ‘Aussie’ caused by global trade tensions.
AUD may see some relief this afternoon as the Reserve Bank of Australia (RBA) releases its latest batch of employment data, which could see the ‘Aussie’ make some gains if the figures are positive.
GBP/NZD Exchange Rate Escapes Slump after Bearish RBNZ Statement
The Pound New Zealand Dollar (GBP/NZD) exchange rate recouped the losses it suffered on Wednesday after the Reserve Bank of New Zealand (RBNZ) implied in its latest policy statement that New Zealand interest rates may not rise for a while yet.
The ‘Kiwi’ may weaken further today should New Zealand’s PPI output for the second quarter fall below forecast.
Currency rates were extremely volatile last week as the coronavirus situation worsened day by day with various countries implementing ever-tougher measures to stop the spread of the disease.
Last update: 23 Mar, 2020
This week the US Dollar was touching three-year highs when valued against a basket of major currencies. The greenback’s traditional role as one of the safe-haven currencies is helped by a domestic economy that is largely immune to the threats of the coronavirus.
Last update: 22 Feb, 2020
The strong start to the year for “risk-on” currencies is already a distant memory.
Posted: 3 Feb, 2020