Brexit Concerns Dampen Pound Sentiment
With a deteriorating economic outlook a possibly inevitable result of a hard Brexit, the Pound continued to slide against its two major counterparts, the US Dollar and the common currency Euro. An upcoming vote in the British Parliament on the latest proposal has no clear outcome given the lack of support by the Prime Minister's Conservative Party. Yesterday, the Bank of England cautioned that the economic consequences of a no-deal could be even worse than the financial crisis which hit more than a decade ago. The BoE scenario suggests that the Pound could lose up to 25% of its value if a disorderly departure from the EU occurs.
As reported at 11:00 am (GMT) in London, the GBP/USD was trading at $1.2763, down 0.47% and just a few pips off the session trough of $1.2758, while the high is a distant $1.2850. The EUR/GBP is trading at 0.8893 Pence, a gain of 0.37%; in today's session, the pair has ranged from a low of 0.88598 Pence to a peak of 0.89124 Pence.
Positive Momentum for Euro Fleeting
In the Eurozone, the EUR/USD briefly inched higher on the latest economic data. The European Commission released a number of surveys which were, with one exception, generally better than anticipated. Industrial confidence, business climate, services sentiment and economic sentiment indicator were all improved from the previous readings and beat analysts' forecasts. The exception was the survey for consumer confidence which came in at -3.9, unchanged and as expected. The EUR/USD was trading higher at $1.1352, down 0.12% and sliding from the brief blip higher at $1.1375.