The Pound Sterling struck a 5-week trough versus the common currency Euro as investors wait to hear what the British Foreign Secretary will have to say about the Brexit Process. Boris Johnson is due to speak on Saturday and is only the first in a long list of politicians and experts who will discuss the ramifications of the Brexit. Johnson is “credited” for encouraging Britons to vote in favor of the Brexit referendum in June 2016. Some believe that his choice of words is likely to weigh on the Pound which fell 0.8% the last time he made a major speech.
As reported at 10:36 am (GMT) in London, the GBP/USD was trading at $1.387, down 0.11%; the pair has ranged from a session trough of $1.3855 to a peak of $1.3921. The EUR/GBP is up 0.13584% and trading at 0.89078 Pence; earlier, the pair hit a peak of 0.89200 Pence while the low is at 0.88878 Pence.
Data Supports BoE Rate Hike
Yesterday, the Pound had ridden higher after the latest economic data which showed that January CPI remained near last month’s 6-year peak at 3.0%, just off analysts’ forecasts of a fall to 2.9%. The elevation of the CPI has led to increased speculation that the UK central bank would likely raise interest rates in May. Last week, the Bank of England surprised markets by suggesting a swifter pace of rate hikes in order to meet its 2% inflation target within the next 48 months.