Sterling Up as Traders Await BoE
The Pound was generally neutral but trending higher during Wednesday trade in London as FX traders weighed the pros and cons of the upcoming general election and what the outcome might mean for the signing of a trade deal before the January 31st deadline. Market players also want to see what the next move might be from the Bank of England at its next policy meeting tomorrow. Analysts believe that data and sentiment suggest a BoE rate cut, perhaps not imminently but soon, as opposed to an increase.
As of 11:12 am in London trade, the GBP/USD was trading higher at $1.2886, a gain of 0.0652$; the pair has ranged from a trough of $1.28680 to a peak of $1.28952 in this session. The EUR/GBP was also higher at 0.8605 Pence, up 0.0954% and off the earlier peak of 0.86126 Pence.
Eurozone PMIs Improve Sentiment
In the Eurozone, the common currency is getting a boost from somewhat upbeat data releases from Germany and the EU. Earlier today, Markit reported that Germany's October PMI for the Services sector and the composite reading were both better than expected at 51.6 and 48.9, respectively. While France's PMI readings were flat and Spain's disappointed, it was enough to boost the Eurozone readings which were 52.2 and 50.6 for the Services Sector and Composite. That lifted the EUR/USD to $1.1088, a gain of 0.1174%.
- Currency Pairs