The Pound Sterling edged higher and struck a 9-week peak versus the US Dollar on news that the UK's CPI for August was higher than anticipated, coming in at 2.7%, above the 2.4% expected. Core inflation was also unexpectedly higher at 2.1%, above the 1.8% predicted. August's retail prices were also better than expected at 3.5% against analysts' forecasts of 3.2%. With the EU summit just ahead, Sterling bulls are hopeful that the latest data coupled with an improved outlook for a soft Brexit could help lift the Pound from the doldrums.
As reported at 10:57 am (BST) in London, the GBP/USD was trading at $1.32, up 0.24% and edging just away from the session peak of $1.3215. The pair's low for the session was recorded at $1.3142. The EUR/GBP was up 0.01% and trading at 0.8875 Pence; the pair ranged from 0.88617 Pence to 0.89013 Pence in today's session.
Brexit Concerns Continue to Weigh
While sentiment for the Pound has shifted to positive for the time being, some analysts and experts still worry about the ongoing feud within Theresa May's political party. Without consensus within the Conservative Party, critics worry that a “no deal” outcome with EU negotiators will result in a plummeting Pound which would then weigh heavily on the UK economy. Analysts see the Brexit talks as the most critical factor pressuring Sterling.The Pound Sterling edged higher and struck a 9-week peak versus the US Dollar on news that the UK's CPI for August was higher than anticipated, coming in at 2.7%, above the 2.4% expected. Core inflation was also unexpectedly higher at 2.1%, above the 1.8% predicted. August's retail prices were also better than expected at 3.5% against analysts' forecasts of 3.2%. With the EU summit just ahead, Sterling bulls are hopeful that the latest data coupled with an improved outlook for a soft Brexit could help lift the Pound from the doldrums.
As reported at 10:57 am (BST) in London, the GBP/USD was trading at $1.32, up 0.24% and edging just away from the session peak of $1.3215. The pair's low for the session was recorded at $1.3142. The EUR/GBP was up 0.01% and trading at 0.8875 Pence; the pair ranged from 0.88617 Pence to 0.89013 Pence in today's session.
Brexit Concerns Continue to Weigh
While sentiment for the Pound has shifted to positive for the time being, some analysts and experts still worry about the ongoing feud within Theresa May's political party. Without consensus within the Conservative Party, critics worry that a “no deal” outcome with EU negotiators will result in a plummeting Pound which would then weigh heavily on the UK economy. Analysts see the Brexit talks as the most critical factor pressuring Sterling.