Pound Lifted by Postponement Prospect
The Pound Sterling inched higher against the US Dollar but remains within a tight trading band as FX traders get ready for the next set of uncertainties revolving around the Brexit. Later today, the European Union is expected to allow another postponement of the April 12th Brexit deadline. Analysts say that there may be conditions attached to that extension that the Prime Minister may not necessarily agree with but she will have little option but to accept the proposed terms. EU diplomats have reportedly said that the EU leadership is prepared to offer an extension through to as far out as March 2020, but that is believed to be far longer than Theresa May had wanted.
As reported at 11:07 am (GMT) in London, the GBP/USD was trading higher at $1.3079, a gain of 0.2099%; the pair has traded within a band recorded at $3.3048 at the low end and $1.3086 at the high end. The EUR/GBP is trading at 0.8623 Pence, down 0l.0487%; the pair is moving off the session trough of 0.86121 Pence while the high was recorded at 0.86323 Pence.
Data Provides More Support for Pound
Upbeat economic news is also providing some momentum for the Pound. The UK's Office of National Statistics reported that Industrial and Manufacturing Production were up in February, at 0.6% and 0.9%, respectively beating analysts' expectations across the board, on a month-over-month basis. Gross Domestic Product for the UK was also higher in February, coming in at 0.2% (month-over-month), against forecasts of 0.0% from the previous reading of 0.5%.