GBP Exchange Rates Sent into a Tailspin Following Minister’s Gloomy Comments
Pound Sterling (GBP) exchange rates fell early on Monday after International Trade Secretary Liam Fox stated that he believed a no-deal Brexit is now the most likely outcome for the UK.
GBP investors were left in the cold following Fox’s suggestion that there is now a 60/40 chance that the UK’s split with the EU will take place without any kind of trade deal, thus diminishing the value of the Pound.
The next few days are fairly quiet as regards UK data, leaving Brexit developments with the strongest sway over the GBP exchange rate.
GBP/EUR Exchange Rate Weakens Regardless of Soft German Data
The Pound Euro (GBP/EUR) exchange rate enjoyed a brief respite after Fox’s Brexit comments.
The relief, though marginal, came from Germany’s latest factory orders figures, which showed an even lower-than-expected decline in June, slowing the Euro’s gains.
The Pound may see more respite today as well after more disappointing German factory data, this time in the form of the monthly industrial production figure, which has dropped to 0.9%.
GBP/USD Exchange Rate Plunges following Continued Trade Concerns
Ongoing uncertainty surrounding a potential US-China trade war dented the Pound US Dollar (GBP/USD) exchange rate yesterday, forcing it to its lowest rate in almost a year.
With trade war speculation showing no signs of slowing, investors turned to the US Dollar in a bid to avoid risk.
The ‘Greenback’ may see further gains this afternoon with economists predicting favourable US job openings data for June, which would likely force the GBP/USD exchange rate to retreat further.
Decrease in GBP/CAD Exchange Rate Cushioned by Saudi Arabia Trade Row
Even as Sterling devalued against all major currencies on Monday, the Pound Canadian Dollar (GBP/CAD) exchange rate got some leg room following Saudi Arabia’s decision to halt all trade with Canada, plunging the ‘Loonie’ into further trade uncertainty.
The row was sparked when Canada called for the release from prison of a number of human rights activists, leading to claims of ‘political meddling’ from Saudi Arabia.
GBP/AUD Exchange Rate Dips following RBA Rate Decision
The Pound Australian Dollar (GBP/AUD) exchange rate fell overnight on Monday after the Reserve Bank of Australia (RBA) announced that it was keeping interest rates at the 1.5% mark despite inflation dipping of late.
Sliding GBP/NZD Exchange Rate Not Helped by Decrease in Risk Appetite
The Pound New Zealand Dollar (GBP/NZD) exchange rate’s tumble following Liam Fox’s Brexit warning was offered little respite despite the growing global trade jitters, which would ordinarily see downside pressure on NZD.
The New Zealand Dollar could see some losses today, however, with a slip in prices at the latest global dairy auction likely to affect the commodity-correlated ‘Kiwi’.
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