GBP records gains as major peers battered by uncertainty

There wasn’t much in the pound’s favour last week, yet other currencies were facing bigger or more immediate risks, allowing GBP to rise.

Today, however, GBP/EUR has tumbled -0.4% to €1.0870, while GBP/USD is stuck at opening levels of US$1.2949.

The UK’s economic outlook could gain a boost or take a battering tomorrow, depending upon how the latest services PMI prints. Meanwhile, the euro and Australian dollar have upcoming monetary policy meetings to contend with.

Pound climbs on overseas weakness even as Brexit talks disappoint

Although the latest round of Brexit negotiations yielded little progress last week, the pound was able to capitalise on the fact other currencies were facing greater challenges.

Doubts over ECB policy changes weigh on euro

Fears that a recent euro rally had been overdone kept markets wary of the common currency last week. Traders were beginning to wonder whether the European Central Bank (ECB) might delay its plans to start tapering its quantitative easing programme, applying further downside pressure to the euro.

USD slips as latest data knocks odds of December interest rate hike

US data started the week on a promising note, but releases towards the weekend saw the odds of an interest rate hike in December tumble, allowing the weakened pound to scrape some gains.

Geopolitical tensions continue to weigh on AUD and NZD

A fluctuating US dollar and strained tensions between the US and North Korea saw AUD and NZD on volatile form last week. GBP/AUD settled around opening levels at AU$1.6250 after a volatile week, while GBP/NZD had climbed to NZ$1.8099.