Pound Higher Ahead of Data
The British Pound edged higher during London trade on Monday even as the parties continue to discuss the Brexit arrangements for the newly extended departure date. Though volatility has declined since the announcement last week, it has raised the likelihood of many more months of uncertainty from the political realms as both parties attempt to find common ground for a Brexit, or perhaps even, agree not to withdraw.
As reported at 11:48 am (GMT) in London, the GBP/USD was trading at $1.3104, up 0.2571% and off the session peak of $1.3107 while the low was pegged at $1.3071 for the trading day. The EUR/GBP was trading at 0.8631 Pence, down 0.1319%; the pair has ranged from a trough of 0.86299 Pence to a high of 0.86570 Pence.
Insider Expresses Brexit Optimism
While uncertainty does seem to be the only certainty, one insider, Jeremy Hunt, the British Foreign Secretary, reports that the Brexit discussions are actually much more constructive than outsiders have come to believe. One analyst commented that he thinks so long as markets remain focused on the negotiations there is more upside for Sterling than downside. While in the longer run the Brexit will drive Sterling, in the short-term it will be economic data, and in the week ahead markets will see the release of labor figures and inflation data, both key pieces of information used by the Bank of England to formulate monetary policy.