Pound Sterling (GBP) Exchange Rates Unstable amid Lull in Brexit News
The Pound (GBP) mostly fared well on Monday thanks to a stall in new Brexit headlines, with investors seemingly adopting the stance that ‘no news is good news.’
However, this lull for Sterling may not last unless concrete progress is made in Brexit negotiations this week.
The Pound may struggle to derive gains from today’s UK data, with the only release of note being the CBI industrial trends orders for August. The figure is expected to fall short of last month’s.
GBP/EUR Exchange Rate Rises amid Concerns for Italy’s Finance Sector
The Pound Euro (GBP/EUR) exchange rate ticked up at the start of the session as the Euro reacted to worries about Italy’s economy due to a thinly spread budget.
These concerns were initially raised after the Italian government put forward a plan to renovate the country’s outdated infrastructure following the bridge collapse in Genoa last week, but the proposed €80bn budget is likely to meet resistance from the EU due to the bloc’s budget regulations.
A lull in Eurozone data today may see EUR struggle to gain traction, and this may be compounded by ongoing concerns surrounding Turkey’s financial crisis.
GBP/USD Exchange Rate Boosted by Trump’s Fed Censure
The Pound US Dollar (GBP/USD) exchange rate gained some welcome relief as it increased by almost a cent yesterday following criticism from US President Donald Trump about consistently increased domestic interest rates.
Further contributing to the slump in the ‘Greenback’ was a waning interest in safe-haven currencies spilling over from last week, as markets look ahead to trade talks between the US and China.
Like the UK and Eurozone, the US has no noteworthy data releases today, potentially stalling USD gains.
GBP/CAD Exchange Rate Stable despite Rising Oil Prices
The Pound Canadian Dollar (GBP/CAD) exchange rate traded narrowly yesterday, with rising crude prices failing to send CAD higher.
GBP/AUD Exchange Rate Steady following Trade Optimism
The Pound Australian Dollar (GBP/AUD) exchange rate remained largely range-bound at the start of the session, with trade optimism keeping the ‘Aussie’ steady despite economists expressing doubts that the Reserve Bank of Australia (RBA) would hike rates again soon.
Increased Risk Appetite Prompts Fluctuation in GBP/NZD Exchange Rate
The Pound New Zealand Dollar (GBP/NZD) exchange rate made gains at the start of Monday’s session but was knocked back overnight due to renewed risk appetite stemming from the devaluation of the US Dollar (USD).
NZD may bounce back overnight, however, with analysts predicting an uptick in domestic retail sales for the second quarter.
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