Pound Stable as Markets Wait for Economic Data

The Great Britain pound was stable today amid Brexit uncertainties and anticipation of important economic releases this week. (Update: currently the sterling seems to start a gradual move down.)

Britain’s Prime Minister Theresa May is heading to Brussels today to dine with the European Union leaders and try to salvage Brexit negotiations that seems to be falling apart. There was a report that a chance for a positive outcome appeared, yet it was not officially confirmed.

But markets turned their attention away from politics towards macroeconomic data. The Rightmove House Price Index rose 1.1% in October, month-over-month, after falling 1.2% in September, though the report was not a major one. The rest of the week will hold more important releases, the most important arguably tomorrow’s Consumer Price Index. Economists speculate that if the report will confirm inflation overshooting the Bank of England target, an interest rate hike is almost guaranteed.

GBP/USD slid from 1.3298 to 1.3266 as of 12:47 GMT today. EUR/GBP ticked up from 0.8881 to 0.8895, bouncing from the daily low of 0.8855. GBP/JPY edged lower from 148.61 to 148.33.

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