Currency News: UK daily news and forecasts
Pound (GBP) Undermined by Prime Minister’s Brexit Comments
Sterling slipped slightly last week, as Britain’s slew of optimistic PMI figures was not enough to give the British currency a firm footing. Instead, the Pound dropped on concerns that the UK government lacked a concise Brexit negotiations strategy or team. Brexit concerns only worsened over the weekend, when UK Prime Minister Theresa May made comments indicating that Britain cannot simply hold onto ‘bits’ of benefits from the European Union after the Brexit.
Pound (GBP) Fails to Recover Despite Strong UK PMI Trio
Sterling has tumbled this week against the Australian Dollar and other rivals, due largely to Brexit jitters as the UK government is set to begin the Brexit process proper in under three months. This, as well as news that the UK’s most senior UK-EU diplomat (Sir Ivan Rogers) had resigned from his role as EU ambassador weighed on Sterling this week and left the currency unappealing.
Australian Dollar (AUD) Strong on Lasting Risk-Rally and Domestic Data
Investors are becoming increasingly uncertain about the US economy’s future, which has allowed USD rivals to advance slightly. Impressive commodity price news has also bolstered demand for risky currencies like the Australian Dollar. This week it was reported that prices of iron ore grew 81% in 2016. While analysts believe the commodity will fall back this year, it has largely held its ground this week and lasting iron ore cheer has boosted AUD appeal.
Pound Sterling Trended Lower Despite Improved Consumer Confidence
Confidence in Pound Sterling (GBP) has been generally limited thanks to resurgent worries over the government’s Brexit strategy this week, with investors still jittery over the potential loss of access to the single market. A higher-than-expected public sector net borrowing figure also weighed heavily on the appeal of the Pound, with new government debt rising 12.2 billion Pounds in November to suggest a widening of the UK’s trade deficit. The GBP AUD exchange rate was subsequently unable to capitalise on an unexpected uptick in the GfK consumer confidence survey for December.