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Pound Softens against US Dollar (GBP/USD) as Brexit Concerns Markets; GBP/INR, GBP/TRY in Focus

June 7, 2018 12:09 pm | Modified September 4, 2018 7:18 am
GBP, INR, TRY, USD | BY Ashleigh Fox

The Pound began the session climbing against the US Dollar (GBP/USD) as US trade concerns rose. Healthy UK services data helped Sterling on Wednesday too, with the GBP/USD exchange rate rising by around 0.6% and outperforming other G10 majors. However, as the session went on, Brexit concerns weighed on Sterling, creating Pound losses across the board. 

Pound Supported Early on Thursday as UK House Prices Climb

Today, Halifax UK House Price data came in at 1.5% in May on the month, rather than the 1.0% forecast and far better than the previous month’s -3.1% contraction. In the three months through May on the year, prices rose by 1.9% as predicted.

Managing Director of Halifax Russell Galley commented:

‘Both of these measures have fallen since reaching a recent peak, in the final months of last year. These latest price changes reflect a relatively subdued UK housing market. After a sharp rise in January, mortgage approvals have softened in the past three months. While both newly agreed sales and new buyer enquiries are showing signs of stabilisation having fallen in recent months.’

Meanwhile, in the US, concerns over trade wars and NAFTA negotiations are holding the Buck back. Out later in today’s session will be the US Initial Jobless Claims and Continuing Claims figures, along with the Consumer Credit number.

Turkish Central Bank and Reserve Bank of India (RBI) Interest Rates in Focus

Elsewhere, the Reserve Bank of India (RBI) made the unanimous decision to hike interest rates for the first time since 2014. Inflation fears prompted the central bank to adjust rates higher.

Today, eyes on Turkey’s central bank to see whether an interest rate hike is on the cards. Rate hike speculation has allowed the Turkish currency to gain  in recent sessions. Consumer prices in Turkey rose by 12.5% in May which has prompted speculation that the central bank would take action.

The Pound to Indian Rupee (GBP/INR) exchange rate is trading at 90.2930. The Pound to Turkish Lira (GBP/TRY) is trending at levels of 6.1681. The Pound to US Dollar (GBP/USD) exchange rate is trading at 1.3451.




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