Despite Data, Pound Feeling Weight of Brexit

11 January 2017 10:52:54 AM

By: DailyForex.com

The Pound Sterling remained close to a 10-week trough versus the US Dollar as market players ponder the possibility of a “hard” Brexit in which immigration controls are of paramount concern and single market access could be secondary. Despite upbeat economic data released by the UK’s Office of National Statistics, which showed improvement in both manufacturing and industrial production in November (on a month-over-month basis), the GBP/USD pair still posted at a price not seen since late October 2016. The Pound hit a 2-month low against the Euro, as well.

As reported at 10:12 am (GMT) in London, the GBP/USD was trading at $1.2117, down 0.45%; the pair had hit a low of $1.2107 earlier, while the peak was set at $1.2197. The EUR/GBP was trading higher at 0.8691 Pence, up 0.22% and close to the session high; the pair’s daily range begins at the low of 0.8654 Pence and a peak of 0.8694 Pence.

Theresa May Could Offer Clues

One currency strategist confirmed that despite resilience in the UK’s economic data, the overlying worry is the impact of the Brexit on trade and that has dented sentiment for the Pound. Theresa May could offer some additional clues at the Prime Minister’s Question Time where she no doubt will field reporters’ questions on the upcoming Brexit. Since the June 23rd referendum to leave the European Union, the Pound has lost nearly 12% versus the Euro.

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.

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