Published: 2 Jul at 5 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, Germany,
Pound (GBP) Under Pressure as Carney Warns Trade Tensions Could â€˜Shipwreckâ€™ Global Economy
On Tuesday afternoon, Sterling remained under pressure following a disappointing UK construction PMI which fell at its fastest rate in a decade.
Meanwhile, in a speech Bank of England (BoE) Governor Mark Carney warned the global trade war could â€˜shipwreckâ€™ the global economy.
Looking ahead to Wednesday, the Pound could continue to remain under pressure following the release of the services PMI.
If Juneâ€™s services PMI follows the disappointing manufacturing and construction PMIs and slumps further than forecast, the UK currency could slump.
Pound Euro (GBP/EUR) Exchange Rate Falls despite Disappointing German Retail Sales
On Tuesday afternoon the Pound Euro (GBP/EUR) exchange rate remained muted following further disappointing data from the blocâ€™s largest economy.
German retail sales fell by a further-than-forecast -0.6% in May which dampened hopes that strong household spending would prop up the blocâ€™s largest economy.
Meanwhile, the single currency could slide against the Pound following the release of the Eurozoneâ€™s PMI composite.
If the PMI composite falls further than expected in June it could dampen sentiment in the Euro.
Pound US Dollar (GBP/USD) Exchange Rate Flat as US-China Trade Discussions Heading in a â€˜Very Good Directionâ€™
Meanwhile, the Pound US Dollar (GBP/USD) exchange rate was left muted on Tuesday as White House Trade Advisor, Peter Navarro said that US-China trade talks were heading in a â€˜very good directionâ€™.
He also added that any concessions in regard to Chinese telecoms giant, Huawei was small in context of a larger US-China trade deal.
Looking ahead to Wednesday afternoon the US Dollar could fall against GBP following the release of the US ISM non-manufacturing PMI.
If Juneâ€™s PMI falls further than expected in June, the â€˜Greenbackâ€™ could slump.
Pound Canadian Dollar (GBP/CAD) Exchange Rate Slumps despite Disappointing Canadian Manufacturing Production
On Tuesday the Canadian Manufacturing PMI picked up slightly to 49.2 following a 41-month low in May of 49.1.
Despite data showing that manufacturing production fell at its fastest pace for three-and-a-half years, the â€˜Loonieâ€™ rose against the Pound.
Meanwhile, looking ahead to Wednesday, the Canadian Dollar could rise against Sterling following the release of the Canadian imports and exports data.
If exports rise higher than forecast in May it could buoy the Canadian Dollar.
Pound Australian Dollar (GBP/AUD) Exchange Rate Falls despite RBA Rate Cut
The Pound Australian Dollar (GBP/AUD) exchange rate slumped despite the Reserve Bank of Australia
(RBA) slashing interest rates to a fresh record low of 1%.
This is the first back-to-back interest rate cut since 2012, however this could do little to stop the â€˜Aussieâ€™ from rising against Sterling.
Meanwhile, on Wednesday the Australian Dollar could slump against Sterling following the release of the Australian building permits.
If building approvals slump further than forecast in May, the â€˜Aussieâ€™ could slide.
Pound New Zealand Dollar (GBP/NZD) Exchange Rate Flat as NZ Companies Most Downbeat Since Global Financial Crisis
The New Zealand Dollar (NZD) remained muted against Sterling on Tuesday afternoon as data revealed that New Zealand business confidence slumped further.
Companies are the most downbeat since the height of the global financial crisis which has prompted ASB to expect the Reserve Bank of New Zealand (RBNZ) to slash interest rates again.
Meanwhile, at the start of Wednesdayâ€™s session the risk-sensitive â€˜Kiwiâ€™ could slide following the release of Chinaâ€™s Caixin PMI composite.
If the PMI composite slumps further than forecast, it could cause the Pound New Zealand Dollar (GBP/NZD) exchange rate to rise.
As of Tuesday, 2nd July 2019, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.1156, GBP USD exchange rate was 1.2597, GBP AUD exchange rate was 1.801, GBP NZD exchange rate was 1.8871, GBP CAD exchange rate was 1.6508, and GBP CNY exchange rate was 8.6577.