Caution Sends Pound Lower
While cautious optimism has managed to provide the Pound Sterling with some support, the doubting factions have capped momentum and pushed the Pound lower during Wednesday trade in London. Most investors do still anticipate that a deal will be worked out between the European Union and the British government, and that is also providing some lift. As the time remaining for negotiation dwindles, however, that optimism is likely to see a significant shift says analysts; the Brexit will take place at the end of March 2019.
As reported at 11:33 am (BST) in London, the GBP/USD was trading at $1.3153, down 0.18% and off the session high of $1.3183; the low was recorded at just a few pips away at $1.3151. The EUR/GBP is trading higher at 0.8937 Pence, a gain of 0.11%; the pair has ranged from 0.89246 Pence and 0.89 459 Pence.
Fed Bank Eyed
Markets attention will move to the US where the Federal Reserve Bank is expected to announce another interest rate increase, this time to 2.25% from the current 2.00%. Investors will take the opportunity to scrutinize the accompanying policy statement to gauge the timing of the next rate increase, especially given the recent growth in the US economy. The EUR/USD is currently trading at $1.1755, down 0.10%.