Though currently trading slightly higher, the British Pound remains near to recently struck multi-month lows against the Euro as fears of a hard Brexit dominates Pound sentiment. Officials of the European Union said yesterday, after a meeting with the new Prime Minister, that it was readily apparent that Boris Johnson had no plan to renegotiate the terms of the departure agreement. Expectations are that both the Pound will decline against both the common currency and the greenback as the October 31st deadline approaches. Until then, analysts say market players should be ready for a great deal of volatility on the vulnerable Sterling pairs.
As reported t 11:31 am (GMT) in London, the GBP/USD was trading at $1.22, up 0.4835%; the pair has ranged from a trough of $1.2136 to a peak of $1.2210. The EUR/GBP is lower at 0.9176 Pence, down 0.5484% and off the session high of 0.92500 Pence while the low was at 0/91707 Pence.
RBNZ Decision in Focus
Earlier today, the Reserve Bank of Australia decided to leave its benchmark trading rate at the current 1% level. The Reserve bank of New Zealand will also be releasing its decision shortly, and analysts polled are predicting that the RBNZ will be lowering its lending rate from 1.50% to 1.25%. Analysts say that concerns over global growth, especially as it relates to China which has been in a protracted trade war with the United States, is weighing on New Zealand's economy. The NZD/USD is trading at $0.6544, a gain of 0.4019%, while the AUD/USD is higher at $0.6783, a gain of 0.4473%.