The Pound Sterling clawed to its highest level in a month against its US rival on signs that the British government appeared willing to make some important compromises during the initial Brexit discussions. Britain has said it would be flexible over the rules involving trade and fisheries provides the EU agrees to lower some of its demands related to fishing access and regulatory alignment. The Brexit transition period will end in December, and the British government has only the remainder of this month to request an extension. Currency strategists say that those encourage signs coupled with a largely weaker greenback are helping to boost the Pound.
The GBP/USD was trading higher as of 10:27 am in London, with the pair at $1.2563, a gain of 0.5733% and off the session peak of $1.25668. The EUR/GBP was lower at 0.8901 Pence, down 0.1122%; the pair has ranged from a low of 0.88658 Pence to a high of 0.89185 Pence.
Fundamental Data in Focus
With a trading day light on fundamentals, markets will focus on the slew of data to be released globally tomorrow. In Australia, 1st quarter GDP is expected to have fallen to -0.3% on a quarter-over-quarter basis. Later in the day, unemployment data from Germany and the European Union are predicted to have shown a rise in the respective unemployment rates at 6.2% and 8.2%, respectively. In the US, the ADP Employment Change could show -9 million fewer jobs, a significant improvement from the previous period of -20.2 million.