The Pound Sterling couldn't hold onto positive momentum and weakened against the US Dollar after a media report which said that the talks are on the verge of collapse. The report said it was primarily as a result of resistance from the northern Irish party which had, in the past, supported the British government in Parliament. Data from the UK also failed to provide any support with most of today's economic news falling short of analyst's forecasts. September's CPI fell on a year-over-year basis to 1.7%, against an expected reading of 1.8%; essentially, the data was flat from the previous read. Producer price inflation was also disappointing across the board.
The GBP/USD was trading down at $1.2749, a loss of 0.368% as of 11:08 am in London; the pair is off the session low of $1.26541. The Eur/GBP is higher at 0.8655 Pence, a gain of 0.1435%; the session peak was recorded at 0.87238 Pence while the low was at 0.86230 Pence.
Safe Havens Pushed Higher on Trade Woes
The US Dollar Index was also lower at 98.2680 .DXY, down 0.02% and moving close to a 4-week trough on rising worries that the trade talks between the Chinese and US governments will fail to improve the global economic growth outlook. Those concerns sent FX traders to the safe haven Japanese Yen, while pushing higher risk currencies lower. The USD/JPY was lower at 108.7080 Yen, down 0.1130%, while the NZD/JPY was trading at 68.034 Yen, a loss of 0.9449% while the AUD/JPY was at 73.2020 Yen, down 0.4286%.