Published: 24 Jun 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) Falls as UK Could see Slowest Consumer Spending Growth in Six Years
The Pound Sterling (GBP) slumped against a handful of currencies as the UK currency remained gripped by fears the country would crash out of the European Union on 31 October without a deal.
Meanwhile, the EY ITEM Club also revealed that the UK will see the slowest growth in consumer spending in six years.
Looking ahead to Tuesday, due to a lack of economic data releases it is likely Sterling will remain under pressure as the Conservative Leadership contest continues.
Pound Euro (GBP/EUR) Exchange Rate Falls despite Falling German Business Morale
On Monday, the Euro (EUR) rose against the Pound (GBP) despite data showing that German business morale fell to its lowest level since November 2014.
The IFO Institute revealed that its business climate index fell for the third consecutive month to 97.4 in June.
Meanwhile, looking ahead to Tuesday the single currency could slump against Sterling following a speech from the European Central Bankâ€™s (ECB) Vice-President Luis De Guindos.
If De Guindos mentions monetary policy, and his tone is overly dovish, it could dampen sentiment in the Euro.
Pound US Dollar (GBP/USD) Exchange Rate Muted Ahead of Trump-Xi Meeting
The US Dollar (USD) was left under pressure ahead of this weekâ€™s meeting between US President Donald Trump and Chinese Leader Xi Jinping.
Added to this, on Monday Vice Minister of Commerce Wang Shouwen said that China
should not be the only side to compromise which likely dampened sentiment in the Dollar.
Looking towards Tuesday, the US Dollar could slide against GBP following a speech from the Federal Reserveâ€™s Chair Jerome Powell.
If Powell mentions monetary policy and his tone is overly dovish increasing the chance of an interest rate cut the â€˜Greenbackâ€™ could slide.
Pound Canadian Dollar (GBP/CAD) Exchange Rate Slumps as Oil Prices Rise on US-Iran Tensions
The Pound Canadian Dollar (GBP/CAD) exchange rate slumped on Monday as oil prices rose due to tensions between the US and Iran.
The end of last week saw large oil price gains as Washington was set to announce new sanctions on Tehran, which likely buoyed the oil-sensitive â€˜Loonieâ€™.
Looking ahead to Tuesday CAD could slump following the release of the Canadian wholesales sales.
If sales do not rise as high as forecast in April, it could dampen sentiment in the â€˜Loonieâ€™.
Pound Australian Dollar (GBP/AUD) Exchange Rate Slips as Chance of RBA Rate Cut Decreases
The Australian Dollar (AUD) rose against the Pound (GBP) following a surprisingly upbeat speech from the Governor of the Reserve Bank of Australia
(RBA), Philip Lowe.
During his speech, Lowe refrained from hinting at any policy moves from the RBA, which caused markets to believe the chance of an RBA interest rate cut is slightly less likely.
Meanwhile, the Australian Dollar (AUD) could rise following a speech from the RBAâ€™s Michele Bullock.
If Bullockâ€™s speech follows Loweâ€™s and causes markets to believe a near-term interest rate cut is less likely, it could buoy the â€˜Aussieâ€™.
Pound New Zealand Dollar (GBP/NZD) Exchange Rate Slumps Ahead of RBNZâ€™s Interest Rate Decision
The Pound New Zealand Dollar (GBP/NZD) exchange rate slumped on Monday as a speech from the RBAâ€™s Governor Lowe and increased risk-appetite buoyed the â€˜Kiwiâ€™.
Looking ahead, it is likely the New Zealand Dollar will remain under pressure ahead of the release of the Reserve Bank of New Zealandâ€™s (RBNZ) interest rate decision on Wednesday.
It is likely the â€˜Kiwiâ€™ will slide if the bankâ€™s tone in its interest rate statement is overly dovish and suggests an interest rate cut is in sight.
As of Monday, 24th June 2019, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.1176, GBP USD exchange rate was 1.2738, GBP AUD exchange rate was 1.8287, GBP NZD exchange rate was 1.9235, GBP CAD exchange rate was 1.679, and GBP CNY exchange rate was 8.7601.