Pound Sterling (GBP) Exchange Rates Range-Bound as Brexit Doubt Plagues Markets
The Pound (GBP) was trading in a narrow range against most major currencies during Wednesday’s session as Brexit jitters plagued markets, effectively muting Sterling gains.
GBP may again struggle to attain momentum today if Brexit uncertainty persists, with politicians coy and economists split on whether a Brexit deal will be finalised by the deadline in October.
This morning brings the release of the CBI distributive trades figures, which are forecast to show a decline in sales this month, which would not help Sterling against its peers.
GBP/EUR Exchange Rate See-saws Before ECB Minutes
The Pound Euro (GBP/EUR) exchange rate oscillated on Wednesday amid a quiet calendar day for the UK and EU, leaving geopolitics to dominate market sentiment.
Neither currency managed to achieve forward momentum as developments were limited on the Brexit, US-China and Turkey fronts, which saw the pairing end the day near its opening levels.
Today’s Eurozone PMIs were mixed and had little impact on GBP/EUR, but the minutes from the last European Central Bank (ECB) policy meeting could prove influential. If the minutes strike a hawkish tone the Euro could march higher in the hours ahead.
GBP/USD Exchange Rate Jumps amid Trump Scandal Implication
The Pound US Dollar (GBP/USD) exchange rate hit its highest rate since the 9th of August yesterday after widespread reports that Michael Cohen, President Donald Trump’s ex-lawyer, had confessed that he had been instructed by Trump to issue hush-money during the current President’s campaign.
This news ruffled the feathers of USD investors, weakening the ‘Greenback’ against most of its peers. Nevertheless, the US Dollar has already recouped some of its losses today and looks set to continue its momentum provided that US housing figures show an increase this afternoon.
GBP/CAD Exchange Rate Volatile as Canadian Retail Sales Disappoint
Despite a swell in crude oil prices, the Pound Canadian Dollar (GBP/CAD) exchange rate strengthened towards the end of the session courtesy of some below-forecast Canadian sales data.
The pairing initially tipped in favour of the ‘Loonie’ as oil prices ticked up, but fell in the afternoon as Canada’s retail sales growth for June was shown to have decreased by -0.2%.
GBP/AUD Exchange Rate Surges following Australian Parliament Chaos
The Pound Australian Dollar (GBP/AUD) exchange rate climbed during yesterday’s session as a faction of the Australian Liberal party indicated it would continue to attempt to oust Prime Minister Malcolm Turnbull, leading to a substantial sell-off of the ‘Aussie’.
GBP/NZD Exchange Rate Climbs on Further US Tariffs
The Pound New Zealand Dollar (GBP/NZD) exchange rate strengthened overnight following an announcement that the White House is adding additional tariffs to Chinese goods, even as representatives from the two nations met to talk about the ongoing trade spat. This naturally prompted markets to go risk-off.
The ‘Kiwi’s’ woes may continue during today’s session, with New Zealand’s trade data from July expected to show a widened deficit.
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