Sterling Recovers ahead of Brexit Talks
The Pound Sterling recovered from last Friday’s slide which came on the heels of the Prime Minister’s disappointing speech. Theresa May did not offer investors any sort of reassurance regarding political uncertainty and as a result the Pound remained under some sell pressure. Data showed that FX investors have trimmed their Pound bets versus the Euro in recent days, moving close to a 2-year weekly low on Tuesday, following the Bank of England’s announcement that interest rates would not be hiked for several months. The Brexit talks are also a disappointment to investors who have been waiting for some details as to how Britain might maintain preferential access upon leaving the EU.
As reported at 11:13 am (BST) in London, the GBP/USD was trading at $1.3515, a gain of 0.16%; the pair earlier hit a session peak of $1.3571 while the low stands at $1.3470. The EUR/GBP is trading at 0.87952 Pence, a loss of 0.16% and off the session trough of 0.87810 Pence.
EUR/USD Lower after IFO
In the Eurozone, the latest economic data, specifically the September IFO surveys of Germany’s business environment, fell short of market expectations. According to IFO, the reading of the Current Assessment fell to 123.6, short of the 124.8 forecast, while IFO Expectations fell to 107.4, from a downgraded 107.7 in August. As the Eurozone’s largest economy, any disappointment in the IFO readings tends to weigh on the common currency. The EUR/USD is currently lower at $1.1885, down 0.16%; the pair has ranged from a session low of $1.18790 to a peak of $1.19600.