The Pound Sterling inched to a 6-week peak against the common currency Euro as unexpectedly upbeat data helped to quell investors’ concerns over the likely impact on the UK economy of Britain’s departure from the European Union. Given that, however, analysts warn that the long-term outlook for the Pound is still relatively bearish versus the common currency, though any positive surprises are likely to result in a short-term gain. Since the Brexit vote nearly a year ago, the Pound has lost about 20% of its value which has driven up domestic inflation. Purchasing power is a concern for investors, but the latest data showed improved wage growth which allayed some fears despite a tick up in consumer inflation.
As reported at 10:53 am (BST) in London, the EUR/GBP was trading at 0.8485 Pence, down 0.22%, and off the session low of 0.8476 Pence while the peak was set at 0.8510 Pence. The GBP/USD was lower at $1.2539, down 0.04%; the pair earlier hit a low of $1.2533 while the high for the session stands at $1.2574.
Aussie Dollar Higher on Data
In Australia, the latest labor data has helped to push the Aussie higher versus the US Dollar. The March participation rate unexpectedly hit 64.8% against forecasts of 64.6%, while the seasonally adjusted employment change came in with a reading of 60.9K, against expectations of a rise to 20.0K from 2.8K (which was upwardly adjusted from -6.4K). The AUD/USD was up 0.59% to trade at $0.7582, just a pip off the session high of $0.7583 while the low for the day was at $0.7520. Against the Kiwi Dollar, the Aussie was trading higher with the AUD/NZD at NZ$1.0819, a gain of 0.33%.