Pound Pressured as Jitters Resume


pound selling pressureThe Pound Sterling remains under sell pressure despite news that the UK Parliament was going to try to force the Prime Minister to request a new deadline. In response, Boris Johnson said he would not. That uncertainty, and the game of high stakes “chicken” that both parties are playing, has kept investors jittery as the October 31st deadline draws closer. Analysts say that the withdrawal without a more favorable agreement will all but wreak havoc on the UK economy.

As reported at 10:50 am (GMT) in London, the GBP/USD was trading at $1.2328, down 0.1935% and moving away from the earlier struck low of $1.2307. The EUR/GBP is higher at 0.8957 Pence, a gain of 0.1935%; the pair has ranged from a trough of 0.89250 Pence to a high of 0.89743 Pence.

UK Labor Data Mixed

Mixed labor data for the UK market failed to provide any major impact in Sterling trade. Average earnings with bonus for the 3-month period to July was higher at 4%, better than the 3.7% expected. Excluding bonuses, the reading was as predicted at 3.8%, off the 3.9% of the previous numbers. The ILO unemployment rate unexpectedly dropped to 3.8%, down from 3.9% which had been forecast.

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.