Sterling Shows Weakness Ahead of Important Reports

The Great Britain pound demonstrated weakness today ahead of tomorrow’s important economic releases that should guide the currency’s performance for the near future. Similar to most other major currencies, the sterling managed to outperform the euro.
It is expected that claims for unemployment benefits will show a drop by 30,700. The unemployment rate should fall by 0.1 percentage point to 6.8 percent according to analysts’ estimates. Bank of England Governor Mark Carney will release an Inflation Report and speak at the press-conference along with other Monetary Policy Committee members. The speech may give hints to the future policy of Britain’s central bank.
The sterling was soft despite the positive outlook for tomorrow’s reports, and today’s data was not able to help the currency either. The Retail Sales Monitor of British Retail Consortium was up 4.2 percent in April from a year ago on a like-for-like basis.
GBP/USD dropped from 1.6868 to 1.6822 as of 19:02 GMT today. GBP/JPY edged up from 172.24 to 172.72 but slipped to 172.05 later. EUR/GBP dropped from 0.8155 to 0.8141, reaching the low of 0.8134 intraday — the weakest price since January 2013.

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