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Sterling Strengthens as May Discusses Expat Rights at EU Summit

#News #AUD #CAD #EUR #GBP #NZD #USD
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Sterling


GBP/USD 1 Week Chart

The Pound (GBP) rallied against the majority of its peers this morning following an EU summit dinner yesterday evening.

After the dinner May outlined her plans to allow 3m EU citizens to remain living in the UK after Brexit, with German Chancellor Angela Merkel calling her plans a ‘good start’.

Expat rights remain a major hurdle in the UK’s Brexit negotiations, but with the positive reaction to May’s ‘fair and serious’ offer the PM’s plans are likely to bolster confidence that the ongoing talks will progress smoothly.

Euro

The Pound Euro (GBP EUR) exchange rate trended slightly higher this morning following Theresa May’s appearance in Brussels.

However the single currency was able to temper Sterling’s gains as robust figures in June’s Eurozone PMI helped the bloc’s private sector post its best quarter since the start of the debt crisis six years ago, although investors did share some concerns as a slight slowdown in the services sector suggests that the rapid pace of recent growth may be coming to an end.

US Dollar

Sterling climbed by over half a cent against the US Dollar (USD) overnight on Thursday as markets reacted favourably to May’s proposals.

Meanwhile the ‘Greenback’ was driven lower on Thursday as investors mulled over the possibility of a third US rate hike later in the year, with analysts remaining wary of the possibility, despite hawkish remarks from Federal Reserve policy makers in recent weeks.

The US Dollar may claw back some of its losses later this afternoon however as economists predict that the latest PMI flash will show that the US private sector is slowly finding strength.

Canadian Dollar

After relinquishing much of its recent gains yesterday afternoon as Canadian Retail sales beat expectations, the Pound Canadian Dollar (GBP CAD) exchange rate began to push higher again this morning as trader flocked to the pound following the EU Summit.

The ‘Loonie’ may cede even more ground this afternoon with the release of Canada’s latest inflation figures, with economists forecasting that the inflation rate will have fallen from 1.6% to 1.5% in May.

Australian Dollar

Sterling appears to have stabilised against the Australian Dollar (AUD) this week as the pairing remains close to the levels struck late on Wednesday, with a lull in data for either market likely to leave the currencies holding steady for the remainder of the session.

New Zealand Dollar

The Pound made small gains against the New Zealand Dollar (NZD) this morning following the positive reaction to Theresa May’s EU summit appearance, however the pairing remains close to a three month low with the ‘Kiwi’ bolstered by the recent Reserve Bank of New Zealand (RBNZ) policy meeting.

 

Further Reading

 

Coronavirus spread fears linger – USD strong – AUD at 11 year lows

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Last update: 22 Feb, 2020

Coronavirus unnerves currency markets

The strong start to the year for “risk-on” currencies is already a distant memory.

Posted: 3 Feb, 2020

New Year Optimism Retreats on US/Iran Tension

The threat of a proxy war between the US and Iran in Iraq has pared back some of the recent gains of “risk-on” currencies.

Last update: 8 Jan, 2020

  

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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