Pound Slips as Brexit Talks Stall

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GBP/USD 1 Week Chart

The Pound (GBP) slipped against some of the other majors on Thursday following the conclusion of the third round of Brexit talks as both sides expressed frustration at the pace of negotiations.

EU chief negotiator Michel Barnier said that ‘no decisive progress’ had been made during the talks, with the main point of contentions apparently being over the arrangements of the UK’s withdrawal, particularly in regard to the UK’s ‘divorce bill’.

Meanwhile the Pound may also struggle to advance this morning as economists forecast that the UK’s latest Manufacturing PMI will show a slight decline in activity in the factory sector in August.


After fluctuating for much of the European session yesterday the Pound Euro (GBP EUR) exchange rate ended the day slightly down as concerns over Brexit negotiations grew.

However the single currency also struggled to advance yesterday as investors remained pessimistic towards the chances of a rate hike from the European Central Bank (ECB) next week, despite a slight uptick in Eurozone inflation in August.

US Dollar

Sterling initially tumbled against the US Dollar (USD) on Thursday before the pairing was able to re-coup much of its losses by the end of the day following some weak US economic data.

Investors were dismayed by yesterday’s PCE inflation figures which placed core inflation at a 17-month low in July, causing doubts over whether the Federal Reserve will vote for another rate hike this year.

However the US Dollar may find its feet again this afternoon with the release of the latest US Non-Farm Payroll figures, with markets hoping that a better than expected ADP employment report earlier in the week will be reflected positively in today’s data.

Canadian Dollar

The Pound Canadian Dollar (GBP CAD) exchange rate fell sharply yesterday as Canada published its latest GDP figures, revealing that its economy grew 1.1% in the second quarter; its fastest pace of growth since 2011.

Australian Dollar

Sterling fell from a two-week high against the Australian Dollar (AUD) on Thursday as the ‘Aussie’ was propelled higher by weakened demand for the US Dollar and another rally in commodity prices.

New Zealand Dollar

The Pound New Zealand Dollar (GBP NZD) exchange rate managed to claw itself slightly higher on Thursday despite growing Brexit concerns as investors become increasingly nervous ahead of the election in New Zealand, with polls suggesting that the opposition has seen a large surge in support.


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Posted to: News

Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.

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