Pound Inches Lower on Data

The Pound Sterling edged lower against the US Dollar and the Euro during Thursday trading in London but is still poised to record its best quarter in more than three years. Analysts say that rebalancing of portfolios by FX traders weighed on the Pound, as did the latest economic data, but that likely won’t change the outcome of a strong quarterly performance. The latest Brexit developments have been largely seen as positive which has helped the Pound, and expectations that the UK central bank are also on the verge of a tightening cycle has similarly boosted the currency which is up about 4% against the Dollar this quarter and 1.4% against the Euro.

As reported at 11:03 am (BST) in London, the GBP/USD was trading at $1.4064, down 0.13%; the pair has ranged from a session trough of $1.4035 while the peak is at $1.4097. The EUR/GBP is trading at 0.87575 Pence, a gain of 0.1637%; earlier, the pair had hit a low of 0.87408 Pence and a high of 0.87700 Pence.

Upbeat News Needed for a Push Higher

Analysts say that today’s data helped to solidify expectations of a BoE rate hike, with business investment in the 4th quarter moving to 0.3% from 0.0% previously. The latest reading of GDP remains unchanged at 0.4% (quarter-over-quarter), and the mortgage approvals in February fell sharply. Analysts say that more upbeat data will be needed in order to keep pushing the Pound higher.

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.