The Pound Sterling edged higher against the common currency Euro but was under some pressure versus the US Dollar as market players await testimony by members of the Bank of England. The head of the BoE, Mark Carney, along with other policy makers including the central bank’s chief economist, are testifying before the UK Parliament today. Analysts anticipate that the bankers will largely maintain a neutral stance but what they are waiting for is any emphasis on possible negative risks, especially as it relates to inflation which is still not coming close to the BoE 2% target rate.
As reported at 10:26 am (GMT) in London, the EUR/GBP was trading lower at 0.848 Pence, down 0.40%; the pair has ranged from a low of 0.8477 Pence to a peak of 0.8520 Pence in today’s trading session. The GBP/USD was down 0.30% to trade at $1.2426, off the session low of $1.2417 and well off the peak of $1.2480.
UK Consumers Edgy Over Outlook
Though the Pound Sterling has been relatively steady, at least as compared to the doldrums it fell into after the June 23rd Brexit vote, the latest economic data suggests that UK consumer confidence is waning which has put pressure on the Pound recently. Similarly, worries over the Brexit repercussions are keeping investors wary. The Pound could get a lift from tomorrow’s release of preliminary growth figures, provided that they do not miss analysts’ forecasts.