Sterling Struggles for Footing
The Pound Sterling continued to come under pressure as the likelihood of a hard crash out of the EU escalate. Yesterday, the Prime Minister limited the Parliament's ability to work out a compromise before the October 31st deadline. Analysts say, however, that it is also increasingly likely that, upon the resumption of the Parliamentary session, Boris Johnson could be headed to a no-confidence vote and a snap election, given his recent actions. Although there is still the need for the Queen to approve the Parliamentary suspension, insiders say that she has not yet questioned the request.
As reported at 11:38 am (GMT) in London, the GBP/USD was trading higher at $1.2213, a gain of 0.0123%, and off the earlier trough of $1.2182. The EUR/GBP is trading at 0.9068 Pence, down 0.0165%; the pair has traded within a band of 0.90657 Pence and 0.90940 Pence.
Data Fails to Help Euro
A slew of economic data from the Eurozone was released earlier today, the most compelling of which was the Eurozone's surveys on business sentiment and confidence. The Business Climate survey for August moved into positive territory, though just barely, with a reading of 0.11 against an expected 0.08; the previous reading was at -0.11, revised from -0.12. The Economic Sentiment Indicator also improved to 103.1, up from 102.7; analysts had expected a reading of 102.3. The EUR/USD pair was trading at $1.1073, down 0.0524%.
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