UK pound is heading higher today, in spite of weaker than expected inflation data. Sterling is higher against most of its counterparts. Some of the gains are the result of the popularity of a Brexit from the European Union falling a little bit. However, there are enough weaknesses right now that the sterling’s gains might be short-lived.
Sterling is heading higher as the faction favoring remaining a part of the European Union pulls ahead of those wishing for a Brexit. The slight increase in the likelihood that the United Kingdom will remain a part of the European Union is providing support for the UK pound.
However, even with the good news, there are some soft spots for the sterling. First of all, inflation data for April didn’t meet expectations. UK data has been soft recently, and that means a softer pound. The Bank of England is unlikely to raise rates anytime soon, and there is speculation that a cut might even be on the table because there is room to go lower.
At 13:48 GMT GBP/USD is higher, moving up to 1.4464 from the open at 1.4401. EUR/GBP is lower, heading down to 0.7828 from the open at 0.7860. GBP/JPY is higher, gaining to 158.05 from the open at 157.01.
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