Sterling Pressured by Renewed Brexit Concerns

By: DailyForex.com

The Pound Sterling was hit hard and fast as concerns continue to grow over a possible British exit, aka Brexit, from the E.U. The latest of the market worries came in the wake of the resignation of Iain Duncan Smith, a member of the UK Parliament who was in favor of a Brexit but moreover criticized the Prime Minister’s proposed budget. The fact that Parliamentarians are seriously “taking sides” over a possible Brexit has led analysts to believe that David Cameron may not have trouble retaining enough votes within the Parliament to remain within the E.U. when the votes are cast in June.

As reported at 9:48 am (GMT) in London, the GBP/USD was trading lower at $1.4414, down 0.33%; the pair has ranged from $1.4375 to $1.4467 in today’s trading session. The GBP/EUR was lower at 0.7811 Pence, a gain of 0.25% for the Euro; that pair was trading within a band of 0.7789 Pence and 0.7825 Pence today.

Fed Officials to Offer Outlook

In a short trading week as a result of the holiday on Good Friday, markets will focus on further guidance for interest rate direction from officials of the U.S. Federal Reserve Bank. Recently, Richmond Fed President Jeffrey Lacker gave hawks reason for optimism with his upbeat comments on the divergence of the Fed monetary policy relative to other central banks. Later today, the president of the Atlanta branch of the Fed will be speaking and Chicago president Charles Evans will speak tomorrow.

Barbara Zigah

After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.