The Pound Sterling edged higher against the US Dollar and extended its gains versus the Euro for the 6th consecutive day. Analysts say that was generally a result of the unexpectedly upbeat trade and manufacturing data released last week. Also helping the Pound was the growing political uncertainty within the Eurozone, specifically given upcoming elections in France as well as Italy, Germany and the Netherlands. Moreover, the Greek bailout talks are tending to weigh on the Euro once again.
As reported at 10:40 am (GMT) in London, the GBP/USD was trading at $1.2516, up 0.22%; the pair’s daily range was from a low of $1.2478 to a peak of $1.2538. The EUR/GBP was trading at 0.8503 Pence, down 0.23% and off the low of 0.8491 while the session peak was set at 0.8522 Pence.
UK Data Eyed
In the near term, markets will be focusing ion tomorrow’s release of consumer inflation data or CPI; analysts are forecasting a rise in January’s inflation rate to 1.9% from 1.6%. Later this week, retail sales data for January will be released and is expected to fall to 3.5% (year over year) from 4.3%. Economists point out that that is a toxic combination for the Pound, as rising prices appear to already be putting constraints on consumption.