The Pound Sterling was trading just off the 2-week trough versus the US Dollar today, with the Pound under renewed pressure over concerns of a hard Brexit. Also weighing on the Pound is the latest news that some Scottish nationalists could demand another referendum on the subject of independence, perhaps even as soon as next month; that would coincide with the British government’s intentions to trigger Britain’s departure from the European Union. While the Scottish referendum is not a given, it is creating, according to one spokesman for the British government, “unnecessary uncertainty.”
As reported at 10:31 am (GMT) in London, the GBP/USD was trading at $1.2431, down 0.04%; the pair earlier hit a low of $1.2413 while the session peak was set at $1.2450. The EUR/GBP was up 0.19% to trade at 0.8527 Pence, not far from the session peak at 0.8529 Pence.
UK Inflation Concern for Consumers
Earlier today, Charlotte Hogg, the Deputy Governor of the Bank of England, said that she could tolerate above-target inflation under some circumstances. She also said that if she did not agree with Mark Carney’s stance she would stand up to him. A recently released survey shows that consumer morale fell to -6 in February among British consumers (from -5 in January) as rising inflation rates in the wake of the June 2016 Brexit vote have compelled consumers to be more aware of their financial outlook.