Wednesday, 19 September, 2018

Pound US Dollar (GBP/USD) Exchange Rate Restrained by Global Unease

Brexit: Jeremy Hunt begins tour of European ministers GBP/JPY Price Forecast - British pound turns around violently on Monday
Deanna Wagner | 16 August, 2018, 11:18

The exchange rate also dropped against the Swiss franc.

A break down below the ¥140 level would be catastrophic and open the door to ¥137.50 rather quickly.

But the week ahead looks highly active in UK's market and Pound bulls are expected to remain focused on multiple first tier data updates which are scheduled to release in next three business days.

Investors have been hesitant to keep buying the Pound versus the New Zealand Dollar due to concerns that Britain could be headed for a "no deal" Brexit.

A stall in provocative Brexit headlines has also seen off any sharp downturn in pound value as market focus remains fixed on the unfolding financial crisis in Turkey, which is also contributing to the tapering off of USA dollar value due to easing safe-haven demand.

Bearish Sentiment For GBP On Rise As Probability For No-Deal Brexit Scenario Increases This development widens the potential outcome space of the Brexit-negotiation severely.

Uncertainties about how the Brexit process will impact United Kingdom businesses have been dampening United Kingdom economic activity for months already and these "no deal" Brexit fears have only worsened as next March's Brexit date approaches.

Extremely poor air condition in Calgary because of wildfire smoke
Schultz said the smoke has nowhere to go and is just hanging out in the high level of the atmosphere. Their advice? The air sucks right now , as you can probably tell by looking out your window.

As a currency that is heavily correlated to trade and commodities, the New Zealand Dollar is perceived as being a riskier buy than other major currencies like the Pound.

In the absence of any new data today and with no-deal Brexit fears having cooled somewhat, the Pound is trading narrowly with the majority of its peers.

Towards the end of last week, Turkey's weakening currency, the Turkish Lira (TRY), fell into a constant plummeting trend that continued when markets opened on Monday - despite attempts from Turkey's government to quell it.

Moreover, escalating tensions between the U.S. and Turkey continue to dampen risk sentiment and weigh negatively on the risk currency, the GBP.

Muddying the horizon are major political events - Prime Minister Theresa May's Conservative Party conference in early October, and meetings of European Union leaders in late September and then mid-October.

Key UK data will be published from Tuesday through Thursday. The Q2 growth projections met forecasts, but June's monthly growth figure fell short of expectations with a result of 0.1%.

Wednesday will see the publication of Britain's anticipated July Consumer Price Index (CPI) inflation report, which could influence Bank of England (BoE) interest rate hike bets and the Pound if they surprise.