The GBP/USD pair edged near to a 6-week trough as the Pound comes under pressure from an economic that is nothing but uncertain. That has resulted in lowered expectations that the Bank of England might raise benchmark lending rates soon. Since early August, the Pound has lost better than 3% against the Dollar, largely on a perceived shift in monetary policy after the last policy meeting. At the same time, the US Dollar has seen a broader recovery recently.
As reported at 11:23 am (BST) in London, the GBP/USD was trading at $1.28, down 0.51% and just off the session low; the pair had earlier hit a session peak of $1.29104. The EUR/GBP was trading at 0.9166 Pence, a gain of 0.08%; the pair has ranged from a session low of 0.91514 Pence to a peak of 0.91734 Pence.
Investors Sentiment Remains Cautious
Investors continue to be concerned over the Brexit process and how that process could weigh on UK growth. Even news that the UK experienced a budget surplus in July, the first since 2002, could not alter sentiment. It was hoped that today’s release of CBI figures, industrial orders for August would improve the mood. The CBI reported an August reading of 13, well above the 8 expected, however investors continue to remain wary.