Currently, the Pound is pulling away from its earlier slide versus the US Dollar, largely attributed as a result of investor profit taking. Analysts say that some FX traders appear to have decided to sit on the sidelines as they watch the most recent developments in the ongoing Brexit saga. In recent days, thanks to unexpectedly upbeat economic data, the Pound had touched on its highest price since June 2016, when Britons voted to withdraw from the European Union. Analysts say that while political noise is likely to alter the Pound’s momentum in the short term, it’s unlikely to significantly dent the last year’s overall positive movement.
As reported at 11:05 am (GMT) in London, the GBP/USD was trading at $1.3801, a gain of 0.08% and moving away from the session trough of $1.3755. The EUR/GBP is trading down 0.29884% and hitting 0.88658 Pence; earlier, the pair hit a low of 0.88610 while the session peak is at 0.89080 Pence.
Euro Lower after CPI
The Euro had been moving higher against the US Dollar on expectations that the central bank is likely to begin trimmings its massive Quantitative Easing plans. Today’s economic data, though largely favorable, seems to have diminished some enthusiasm for the common currency. Core CPI was better than expected at 1.1% (year-over-year), up from the 0.9% predicted for December. The CPI figures came in, as expected, at 1.4% (year-over-year) for the month of December, essentially flat. The EUR/USD was trading at $1.2233, down 0.20%; the session low stands at $1.22070 while the high is at $1.23232.