The Pound Sterling managed to rise up recent pressure after earlier falling to a 1-week trough versus the US Dollar. Analysts say that the deep divisions within the UK government have resulted in renewed concerns about the effect the Brexit could have on the economy there and that has pressured the Pound. The UK had been a member of the European Union for 46 years and is due to leave the union at the end of March next week. Many are concerned about the relationship that will replace the current one and whether it would be favorable for Britain in terms of trade with the EU once its membership has ceased.
As reported at 10:59 am (GMT) in London, the GBP/USD was trading at $1.4084, up 0.10%; the pair had earlier struck a low of $1.3979 while the peak for the session is at $1.4105. The EUR/GBP is trading at 0.8816 Pence, up 0.1556%, and off the session high of 0.8833 Pence while the low is at 0.87925 Pence.
Carney on the Hot Seat
In the United Kingdom, markets will turn later today to Mark Carney’s presentation to the UK Parliament’s House of Lords. Mr. Carney, the Governor of the Bank of England, will be discussing the BoE’s economic forecasts amid the Brexit negotiations. Analysts say that he is likely to be thoroughly grilled by the members of the Economic Affairs Committee and called upon to defend the central bank’s 2016 projections which have not come close to the reality.