The Pound (GBP) fell against its peers on Monday following reports that Theresa May’s meeting with European Commission President Jean-Claude Juncker didn’t go as well as hoped.
Juncker is claimed to have warned the Prime Minister that Brexit negotiations would not get underway until May and that a future trade deal won’t be discussed until after the issues of a €60bn divorce bill and EU citizen rights in the UK were solved.
Sterling may also soften further this morning if the UK’s latest Manufacturing PMI slips from 54.2 to 54 as expected.
The Pound Euro (GBP EUR) exchange rate continued to slide this morning as Eurozone data impressed investors.
Markets were upbeat as both Spain and Italy reported a rise in their manufacturing PMIs with activity jumping from 53.9 to 54.4 and 55.7 to 56.2 respectively.
The single currency may be strengthened again later this morning with the release of the Eurozone’s latest unemployment figures, with the jobless rate expected to fall from 9.5% to 9.4% in March.
Sterling tumbled against the US Dollar (USD) yesterday following media reports that Brexit negotiations may have got off to a rocky start.
However the ‘Greenback’s gains were interrupted by the release of the latest US manufacturing PMI as according to data released by ISM, activity plummeted from 57.2 to 54.8 in April, falling at a faster rate than the 0.7 drop analysts had forecast.
While the Pound Canadian Dollar (GBP CAD) exchange rate continued to trend lower this morning its advance was slowed by declining oil prices as the restart to Libyan production caused concerns that more crude oil would flood into an already overflowing global market.
Sterling tumbled against the Australian Dollar (AUD) overnight on Monday as despite the Reserve Bank of Australia (RBA) voting to leave interest rates unchanged, policymakers reacted positively to the latest CPI figures and predicted that underlying inflation was expected to strengthen further.
New Zealand Dollar
The frosty start to Theresa May’s talks with Jean-Claude Juncker also caused the Pound to falter against the New Zealand Dollar (NZD) during Monday’s trading session, with the pairing falling around two cents from the seven-month high struck on Friday.
The ‘Kiwi’ may relinquish some of its gains this afternoon however if prices at the latest Global Dairy Auction begin to slide again after increasing 3.1% a fortnight ago.
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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