The Pound Sterling advanced against the common currency Euro and struck a 2½ week peak earlier today after the latest UK poll showed a 44% lead in favor of remaining within the European Union. Next month, UK citizens will cast their ballots on a referendum on withdrawal from the EU, colloquially known as a “Brexit.” The Pound has been under pressure since late last year as Britons debated the pros and cons of a withdrawal, with many fearing that a Brexit could cripple the fragile economy and drive the Pound down.
As reported at 10:45 am (BST) in London, the EUR/GBP was trading at 0.7821 Pence, down 0.02% and just off today’s opening price; the pair has ranged from 0.7794 Pence to 0.7833 Pence in today’s trading. The GBP/USD was down 0.29% at $1.4418, with a daily range of $1.4403 and $1.4459.
UK Data Shifts Attention to Interest Rates
The issue of interest rates in the UK is also a concern; however, the latest economic data seems to support the case for a hold on rates anytime in the near future. Yesterday, inflation data disappointed while labor figures released earlier were mixed. According to the Office of National Statistics, the claimant count for April was -2.4K, against expectations of a fall to 4.0K; March’s figures were revised downward to 6.7K from 14.7K. The claimant count rate remained unchanged as did the ILO unemployment rate. Average earnings (excluding bonuses) fell unexpectedly to 2.1% against an expected rise to 2.3%.