The Pound Sterling continues to come under pressure after the latest data raised investors’ concerns that the Pound’s most recent gains might be overdone. The Pound hit a 2-week trough against the US Dollar earlier, and analysts are expecting more losses ahead, pointing to weak fundamentals as the culprit for Sterling weakness. Some currency strategists foresee the GBP/USD falling to around $1.33, which would be December’s low. The latest trade balance data (for November) shows the widest gap in five months. Meanwhile Tesco, Britain’s largest retailer, missed December forecasts, despite reported strong sales in food products, as a result of weakened demand for general goods, e.g. computer games, DVDs, etc.
As reported at 10:44 am (GMT) in London, the GBP/USD was trading at $1.3489, down 0.14%; the pair earlier hit a low of $1.3472, while the session peak is at $1.3517. The EUR/GBP was trading at 0.8859 Pence, a gain of 0.10%; the pair has ranged from a low of 0.88413 Pence to a peak of 0.88600 Pence in this session.
Dollar Eking Out Gains
In the US, the greenback managed to recover some recent losses on news that the Chinese regulators have dismissed the latest report that suggest purchases of US Treasury instruments might be halted. That helped the US Dollar regain footing after losing traction earlier in the year. In 2017, the US Dollar Index had fallen nearly 10%, largely as a result of solid economic growth in the Eurozone and elsewhere. The US Dollar Index is currently trading at 92.415 .DXY, a gain of 0.09%.