Pound Higher on Revived Brexit Hopes
Pound traders remain skittish though there appears to be some hope that a hard crash out of the European Union might have been averted thanks to Parliamentary wrangling. Analysts caution that a snap election is still probable, with more uncertainty as a result. Nonetheless, lawmakers in Parliament are hoping they will be able to have a no-Brexit bill passed soon. Lawmakers are attempting an end-run around the Prime Minister who has said that he did not care whether a deal was in place or not and that once the deadline arrived, Britain would leave, regardless.
As reported at 11;10 am (GMT) in London, the GBP/USD was trading at $1.2327, a gain of 0.6028%; the pair has ranged from a low of $1.2211 to a peak of $1.2328 in today's session. The EUR/GBP was trading at 0.8963 Pence, down 0.48% and well off the earlier high of 0.90310 Pence.
German Data Disappoints
There was more disappointing economic data coming out of Germany, the Eurozone's largest and most important economy. According to the Deutsche Bundesbank, factory orders in July fell hard, seasonally adjusted and non-seasonally adjusted, July's reading for nsa factory orders on an annualized basis fell to -5.6, well below the -1.1 expected and the previous reading of -3.6. On month-over-month basis, seasonally adjusted factory orders fell to -2.7% from 2.7, bypassing the forecasts of a drop to -1.5. The impact to the EUR/USD was minimal, with the pair trading at $1.1056, uo 0.1548%.