Though higher currently, the Pound Sterling remains within striking distance of a 5-month trough versus the Euro during Tuesday trade as worries of a hard Brexit weigh. This is the fourth consecutive week that Sterling has been pressured by growing Brexit concerns, and disappointing weak data has done little to improve sentiment. With the Prime Minister set to leave and her replacement still a major unknown, London bookmakers are saying that the odds seem to favor Boris Johnson, who is very much in favor of leaving on October 31st, even without an agreement in place.
As reported at 11:21 am (GMT) in London, the EUR/GBP was trading at 0.8878 Pence, down 0.0124%; the pair has ranged from a trough of 0.88750 Pence to a high of 0.89021 Pence. The GBP/USD was higher at $1.2672, up 0.0671% and off the session peak of $1.2687 while the low was at $1.2642.
Mixed Data in the UK and EU
In the UK, the Markit Construction sector PMI for the month of May fell to 48.6, below the 50.5 flat reading that analysts had been predicting. The drop below the 50.0 threshold suggests that the sector is contracting in the UK. In the Eurozone, it was a mixed bag of releases with the preliminary personal inflation figures missing analysts' forecasts. Eurostat reported that the Consumer Price Index in the Eurozone fell to 1.2% in May (year-over-year) and annualized core CPI dropped to 0.8% (from an expected 0.9%). The Eurozone's unemployment rate was improved at 7.6%, besting the analysts forecasts of a flat 7.7%. The EUR/USD was trading at $1.1247, up 0.0285% and off the session peak of $1.12774.