Pound Sterling (GBP) Exchange Rates Muted after Lacklustre GDP
The Pound (GBP) struggled to get out from under the heel of markets on Friday, with the UK’s latest GDP figures not enough to inspire a Sterling rally.
The 0.4% growth in the second quarter – up from 0.2% in the first – failed to help GBP stage a comeback following the Brexit fallout and stalled UK data last week.
Sterling investors are hopeful of a quiet upcoming week on the Brexit front, with the UK’s latest CPI data due for publication and a forecast increase in inflation possibly helping the Pound recover some ground.
GBP/EUR Exchange Rate Bolstered by ECB Fears over Flailing Turkish Economy
With the ongoing economic crisis in Turkey, the Pound Euro (GBP/EUR) exchange rate was lifted towards the close of last week’s session following European Central Bank (ECB) concerns that Turkey’s dilemma might affect Eurozone economies as well.
With a handful of European banks having invested in Turkey, the ECB is worried that the Eurozone’s ties to the sinking Turkish economy may have a knock-on effect, souring investor confidence in the Euro.
The Euro may weaken against the Pound tomorrow with a forecast stall in the Eurozone’s GDP figures potentially hurting the single currency.
GBP/USD Exchange Rate Plummets as Global Unease sees Investors Flock to Safe Havens
The Pound US Dollar (GBP/USD) exchange rate crash-landed at the end of last week, hitting its lowest level for over a year as a result of fears over an escalating US-China trade war and rising concerns around Turkey’s economy.
The Turkish Lira (TRY) fell by a staggering 19% last week, causing a domino-effect for Turkey-linked countries and emerging-market economies alike.
The ‘Greenback’ may stall this week, however, with a forecast dip in US retail sales likely to impede USD growth.
GBP/CAD Exchange Rate Hurt by Impressive Canadian Employment Data
The Pound Canadian Dollar (GBP/CAD) exchange rate slumped on Friday’s session following some above-forecast Canadian unemployment figures. The national jobless rate dropped to 5.8% in July and saw Sterling drop 0.4% against the ‘Loonie’.
Dovish RBA Statement Boosts GBP/AUD Exchange Rate
The Pound Australian Dollar (GBP/AUD) exchange rate was lifted towards the end of last week’s session as the Reserve Bank of Australia (RBA) reduced its 2018 inflation forecast.
Australia’s latest business confidence figures will be released tonight. A decline in sentiment would be AUD-negative.
GBP/NZD Exchange Rate Fluctuates amid Lira Plunge
The Pound New Zealand Dollar (GBP/NZD) exchange rate fluctuated widely throughout Friday’s session as the Turkish Lira’s (TRY) breakdown tainted risk-appetite, lessening demand for the ‘Kiwi’.
With data from New Zealand in short supply this week, US news, market sentiment and Chinese releases are likely to be the main cause of New Zealand Dollar movement.
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
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Posted: 3 Feb, 2020