The Pound Sterling continues to inch higher versus the US Dollar and the common currency Euro despite mixed UK labor data. The Office of National Statistics reported that the claimant count rate and average earnings (excluding bonus) both met expectations while the claimant count change and average earnings (including bonus) missed the mark. The only bright spot was the ILO unemployment rate which fell to 4.8% from 4.9% in October. Yesterday, it was reported that the inflation rate was still well below the Bank of England’s 2% target rate.
As reported at 10:36 am (GMT) in London, the GBP/USD was trading at $1.2456, up 0.07%; the pair had earlier hit a peak of $1.2502 while the session low stands at $1.2433. The EUR/GBP was trading at 0.8597 Pence, down 0.17%; the daily range for the pair currently stands at 0.8570 Pence at the low end and 0.8626 Pence at the high end.
Brexit Concerns Still Weigh on Sterling
On Tuesday, the Pound Sterling had lost about 1.3% versus the Euro on losses that were triggered in part by a leaked memo which generally said that the Brexit process could take as many as six months given the overall divisions within the government and further, that the Prime Minister’s office had no real plans for the Brexit. Analysts say that the Pound will continue to come under pressure in the mid- to long-term as a result of the continuing Brexit saga because uncertainty will play a major role in investor sentiment.