Pound Lower on Brexit News

Wednesday, 31 January 2018 11:59

The Pound Sterling edged lower versus both the US Dollar and the common currency Euro on the latest Brexit-related news. According to the latest media report, officials at the European Commission have rejected a free trade proposal from the City of London for financial services. Officials said that it could not permit the barrier-less operation of finance companies in each other’s respective market because Britain has already said it intends to leave the single market. One analysis leaked yesterday suggested that the economy in Britain will be worse after the Brexit, regardless of the “deal” the government is finally able to garner.

As reported at 11:00 am (GMT) in London, the GBP/USD was trading lower at $1.4148, down 0.007%; the pair has ranged from a session low of $1.4121 to a peak of $1.4213. The EUR/GBP was up 0.344% and trading at 0.87983 Pence, off the session peak of 0.88163 Pence while the low for the trading day is 0.87580 Pence.

Mark Carney Watching Inflation

The Pound had gained strength yesterday after Mark Carney, the Governor of the Bank of England, said that the central bank was intent on reining in inflation; the BoE has a 2% inflation target. Carney also pointed to rising wages as the members of the Monetary Policy Committee consider the timing of a rate hike for later this year. One currency researcher said that Carney’s upbeat one suggests that the central bank’s forward guidance could be altered, and that they could be more active in the future rather than continuing their wait-and-see stance.

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.

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