Pound Steadies as BoE Looms
The Pound Sterling steadied against its major rivals during the London trading session though FX traders are wary of this week's policy decision from the Bank of England. The latest polls are suggesting that analysts and economists are unsure of the likely outcome of the vote to adjust the interest rate. Recent economic data coupled with comments construed as dovish from the policymakers at the BoE have only served to add to speculation that a rate cut be forthcoming at this week's meeting. What has caused some doubt is the latest unexpectedly upbeat data, specifically last Friday's preliminary PMI reading for January for both the UK's services and marketing sectors; both were higher than analysts had predicted.
As of 11:13 am in London, the GBP/USD was trading higher at $1.3089, a gain of 0.081% and off the session peak of $1.31057. The EUR/GBP was lower at 0.8424 Pence, a loss of 0.083%; the pair has ranged from a trough of 0.84077 Pence to a high of 0.84519 Pence.
Brexit Worries Still Weigh
Analysts still believe the Pound will be under heavy pressure as the Brexit deadline draws near. The official leave date is January 31st, but the British government has until the rest of the year to orchestrate a favorable trade agreement. Recent comments from the Irish Prime Minister have cast doubts on Boris Johnson's ability to strike a deal by year's end. Leo Varadkar says that the EU will likely have the upper hand during the process.