Pound Sterling (GBP) Exchange Rate Flatlines after Brexit Brick Wall
Pound Sterling (GBP) saw a stall in trade late last week following news that Michel Barnier, the EU’s Brexit negotiator, had rejected Theresa May’s customs proposals.
This dealt a significant blow to the Chequers plan and hampers the likelihood that Brexit negotiations with the EU will be wrapped up by October, as Brexit Secretary Dominic Raab initially suggested.
Looking ahead to today’s session, the Bank of England (BoE) is due to publish the UK’s mortgage figures for June, which may cause Sterling to strengthen should mortgage lending and approvals meet the projected increase over last month’s data.
GBP/EUR Exchange Rate Steady Following Below-Par French GDP Figures
The Pound Euro (GBP/EUR) exchange rate was stable on Friday, with Sterling capping off the week on a marginally stronger footing after France released some underwhelming GDP figures.
Europe’s second largest economy was projected to expand by 0.3% in the second quarter, but fell short at 0.2%, frustrating EUR investors.
However, Germany is due to release their latest inflation rate figures on Monday afternoon, with any positive reading likely to bolster the common currency.
GBP/USD Exchange Rate Indifferent to Impressive US GDP Figures
Sterling managed to hold its own against the US Dollar on Friday, despite an impressive increase in US GDP, which revealed that the economy grew by 4.1% in the second quarter, a noteworthy increase over the first quarter’s 2%.
However, projections that these accelerated growth figures would affect the GBP/USD exchange rate were thwarted as the US Dollar failed to capitalise on the date, with analysts expressing doubts over whether the growth would prove sustainable.
GBP/CAD Exchange Rate Steadies Following NAFTA Optimism
The Pound Canadian Dollar (GBP/CAD) exchange was hit as last week’s session drew to a close with tensions around trans-Atlantic trade easing, sparking hopes that NAFTA negotiations would advance.
GBP/AUD Exchange Rate Slips Following US Dollar Dip
The Pound Australian Dollar (GBP/AUD) exchange rate fell by around half a cent towards the close of last week’s session, ending the week more or less as it started. This came after US Dollar demand tapered off, luring investors into higher yield currencies such as the ‘Aussie’.
GBP/NZD Exchange Rate Slides: Risk-Inclined Investors Boost ‘Kiwi’ Demand
The Pound New Zealand Dollar (GBP/NZD) exchange rate followed the same pattern as GBP/AUD late last week, with investors turning to the commodity-correlated ‘Kiwi’ as an alternative to the safer US Dollar.
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