Sterling edged higher against the euro, and managed to recover earlier losses against a stronger US Dollar after a survey from the Bank of England showed no clear signs of a slowdown in the UK’s economic activity in the weeks following the June 23rd Brexit vote. According to the survey, while credit demand seemed to be easing and expectations were lower for investment spending, the majority of companies surveyed didn’t anticipate any significant impact in the near term on their respective capital spending.
As reported at 10:59 am (BST) in London, the EUR/GBP was trading at 0.8346 Pence, down 0.76%; the pair ranged from 0.836 to 0.841 in today’s trading. Meanwhile, the GBP/USD was trading at $1.3184, up 0.64%.
Improved Outlook Encouraging Signs for Pound
One strategist from France says this data is a plus for the Pound Sterling and suggests that the outlook isn’t as murky as had earlier been feared. That suggests that the main argument, i.e. an economy tanking in the last two quarters of 2016 which has thus far weakened the Pound since the Brexit vote, seems to be unraveling. Other economic data is also supporting the Pound, including the fact that the May unemployment rate in the UK fell to 4.9% against expectations it would remain unchanged at 5.0%.