Pound Sterling (GBP) Rises as July’s UK Growth Figure Beats Forecasts

Published: 9 Sep 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 Sterling (GBP)

The Pound (GBP) edged higher against many of its competitors today after July’s UK growth figure rose unexpectedly from 0% to 0.3%, further bolstering optimism in the UK economy as Brexit recession fears continue to recede.

UK markets were also upbeat today with the anti-no-deal Brexit bill expected to gain royal assent later on today. As a result, we could see Sterling edge higher as a no-deal Brexit is effectively shelved once the bill passes into law.

US Dollar (USD)

The US Dollar (USD) eased today as US economic fears continue to haunt US markets, with the Federal Reserve now expected to cut interest rates in the near term as the economy continues to struggle.

This follows US President Donald Trump’s demanding tweet, in which he demanded that the Fed lower rates, along with the CME Group said that the rate cut changes next month are running as high as 90%.

Euro (EUR)

The Euro (EUR) failed to benefit from this morning’s publication of July’s German trade balance figure, which rose unexpectedly from €18.1 billion to €20.2 billion, bolstering hopes for the Eurozone’s powerhouse economy for the third quarter.

However, analysts were sceptical, saying that continuing US-China trade tensions could weigh on the German economy, pushing it into a possible technical recession.

Australian Dollar (AUD)

The Australian Dollar (AUD) eased despite better-than-expected Australian home loans in July, which improved from -08% to 5%.

However, the risk-sensitive ‘Aussie’ continued to suffer from uncertainties surrounding US-China trade relations, with China being Australia’s largest trading partner.

Nevertheless, we could see the ‘Aussie’ and the New Zealand Dollar rise after markets absorb comments from US Treasury Secretary Steven Mnuchin, who said that the two superpowers have come to a ‘conceptual’ agreement.

New Zealand Dollar (NZD)

The New Zealand dollar remained subdued today as traders await the publication of August’s month-on-month electronic card retail sales figure. Any improvement, however, could bolster the ‘Kiwi’ as positive economic sentiment returns in the New Zealand economy.

Canadian Dollar (CAD)

The Canadian Dollar failed to gain on the Pound today as global economic uncertainties continue to weigh on the trade-reliant Canadian economy.

With a quiet Canadian economic data calendar this week, the ‘Loonie’ is likely to be moved by geopolitical developments instead.

As of Monday, 9th September 2019, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1175, GBP USD exchange rate was 1.2348, GBP AUD exchange rate was 1.7987, GBP NZD exchange rate was 1.9212, GBP CAD exchange rate was 1.6259, and GBP CNY exchange rate was 8.7941.

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