The Pound (GBP) found itself sliding against most of its peers at the end of last week’s session as investors were left disappointed by a slew of UK data released on Friday.
Markets were particularly downbeat about the UK’s latest growth figures, which saw annual GDP revised down from 1.7% to 1.5% in the final reading of second quarter growth.
Meanwhile. Sterling may tumble even further this morning as economists forecast that Britain’s Manufacturing PMI will have slipped in September.
The Pound Euro (GBP EUR) exchange rate fell by over half a cent on Friday as investors fled from Sterling in the wake of disappointing GDP figures from the UK.
The single currency was also propelled higher by Germany’s latest unemployment figures as the country’s jobless rate fell to a new record low of 5.6% in September.
The Euro may also start the session on strong footing this week should the Eurozone’s own unemployment figures have fallen in August.
Sterling also slipped by around half a cent against the US Dollar (USD) on Friday morning following the UK’s GDP data.
However, the ‘Greenback’ was undermined later in the afternoon by some disappointing data of its own as the US Personal Consumption Expenditure Price Index –a major indicator of inflation – slid from 0.2% to 0.1% in August.
Meanwhile, the US Dollar may post some gains later today if the US Manufacturing PMI beats market expectations and rises in September.
After initially tumbling on Friday, the Pound Canadian Dollar (GBP CAD) exchange rate made a quick recovery at the start of the US session as Canada’s GDP fell below expectations in July, with the latest report showing that economic growth remained flat at the end of the second quarter.
Sterling is trending slightly lower against Australian Dollar (AUD) at the start of this week’s session as a report suggests that UK manufacturers could stand to lose up to £17bn a year if the UK leaves the EU in a hard Brexit.
New Zealand Dollar
The Pound New Zealand Dollar (GBP NZD) exchange rate has also started the session on the back foot this week, with Sterling sentiment being pressured by fears that a hard Brexit and the defaulting to World Trade Organisation rules will hit Britain’s manufacturers.
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.
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