By: DailyForex.com
Pound Sterling Edged higher versus the US Dollar as FX traders await new cues as to Britain’s departure from the EU. Data released earlier today showed that consumer lending expanded in October at a pace not seen in 11 years; mortgage approvals were also unexpectedly strong. Analysts say that that suggests that consumer demand appears resilient despite the June 23rd referendum to leave the EU. The Pound Sterling, however, remains about 10% lower against the Euro, though it has clawed back some 5% since the beginning of the month, largely as a result of uncertainty in the wake of the Italian constitutional referendum and the upcoming elections in Germany and France.
As reported at 10:33 am (GMT) in London, the GBP/USD was trading at $1.246, a gain of 0.35%; the pair’s trading range for the session has a low of $1.2384 and a peak of $1.2477.
The EUR/GBP is down 0.44% to trade at 0.8509 Pence; earlier, the pair hit a low of 0.8492 Pence while the peak remains a distant 0.8561 Pence.
Brexit Strategy Uncertainty Tempers Outlook
For the time being, how Britain leaves the EU will likely dominate sentiment for the Pound. Earlier today, the British government said that a recent photograph of a document purported to discuss Brexit strategies was inaccurate. Given the uncertainty of the Brexit strategy given that there has been no official news, analysts say that FX traders are likely to continue to be wary.