The Pound Sterling edged lower versus the US Dollar and strayed near to the $1.30 price, a level that it has seemingly been anchored to, as a result of the Brexit talks. Bankers surveyed are split on the Pound’s outlook for 2017, with some arguing that the market’s reaction to the Brexit is already priced in while others believe more losses are in line as the UK’s economy slows further. One analyst pointed out that markets are doubtful that the negotiations will be positive and have begun to prepare themselves for the worst.
As reported at 11:13 am (BST) in London, the GBP/USD was trading at $1.30, down 0.20%; the pair has ranged from a session trough of $1.29714 to a peak of $1.30229. The EUR/GBP was essentially flat at 0.909 Pence; the pair earlier hit a trough of 0.90755 Pence while the peak was at 0.9100 Pence.
UK Data Points Watched
Markets will be watching tomorrow’s release of inflation data for the UK, with analysts forecasting that CPI will edge up to 2.7%; producer price inflation is also due out tomorrow, as well as retail sales. On Wednesday, average wage earnings data will be released, and that is likely to be keenly scrutinized as the latest poll shows that employers in Britain don’t expect to see more than minimal wage growth over the next year, which could weigh on consumer spending.