The Pound Sterling traded close to a 1-week trough as negotiators for the Brexit deal have hit a stumbling block. With only days to go before the start of the European Union summit, the Irish border trade deal has once again become the point at which there seems little agreement. With Britain due to leave the EU next March, how to ensure that the Irish republic is not forced to undergo border checks at the UK frontier is still not clear. According to Michel Barnier, the EU negotiator, he and Dominic Raab, the British Brexit Secretary, have been unable to bridge that gap.
As reported at 11:24 am (BST) in London, the GBP/USD was trading at $1.32, up 0.02%; the pair earlier hit a trough of $1.3086. The EUR/GBP is trading at 0.8815 Pence, a gain of 0.28%; the peak for the session was recorded at 0.88258 Pence while the low is at 0.87721 Pence.
UK Labor Data Eyed
Analysts say that, despite the Irish border impasse, market players remain fairly certain that a Brexit deal will be hammered out at the upcoming summit. With negotiations stalled until the summit begins, data will likely be the driver for the Pound. Tomorrow, markets will focus on the release of labor data from the Office of National Statistics; analysts and economists are forecasting that average earnings for the three-month period through to August will have declined; with a bonus, to 2.4% from 2.6%, and without a bonus, to 2.8% from 2.9%.