Though lower currently, the Pound Sterling remains just above the key $1.30 level as FX traders focus squarely on details of the Brexit discussions as the short-term driver. A last phase of the negotiations are due to begin, and analysts say that they are certain to be the most intense; as of the latest news report, the EU leadership is demanding additional concessions first. Three issues appear to be at the heart of the next phase; namely, governance, fishing, and those relating to a level playing field. The Prime Minister has set October 15th as a self-imposed deadline and the hope is that this part of the deal can be inked before the government's negotiator, David Frost needs to leave for Brussels for the intensified negotiations.
In London trading as of 11:22 am, the GBP/USD was lower at $1.3046, down 0.1217%; the pair has ranged from a low of $1.30140 to a peak of $1.30772 in today's session. The EUR/GBP was lower at 0.9033 Pence, down 0.0332% and off the session trough of 0.90187 Pence while the high was recorded at 0.90533 Pence.
UK Labor Data Mixed
There was mixed news on the UK employment situation. Earlier today, the ONS released labor data; they reported that the ILO unemployment rate had risen to 4.5%, which was higher than analysts had forecast at 4.3% (essentially a forecast of unchanged for the 3-month period). The claimant count change was, however, better than expected at 28 thousand against a forecast of 78.8 thousand, while earnings beat analysts' expectations with a reading of 0% and 0.8%, against a forecast of -0.5% and 0.6%, respectively, for average earnings with and without a bonus.