The Pound Sterling is struggling to gain traction despite positive news that the British government will offer a new solution to the issue of the Irish border which is currently delaying Brexit negotiations. Both the European Union and Britain have said that they don’t want to see the resumption of border checks between Northern Ireland and the Irish Republic; British officials have said that they have a potential solution. Last week, the EU and the British government agreed to a deal which would extend the decision-making process by an additional 21 months.
As reported at 11:03 am (BST) in London, the EUR/GBP was trading at 0.8759 Pence, down 0.0045%; the pair earlier struck a session low of 0.87340 Pence. The GBP/USD was trading at $1.415, down 0.08%; the pair has ranged from $1.4134 to $1.4201 in today’s trading session.
GDP Data to Drive Dollar
Turning to the United States, markets will watch for the latest release of growth figures for the 4th quarter of 2017. Analysts have forecasted that GDP for Q4 will have grown to 2.7% on an annualized basis, up from 2.5% in the previous period. Core personal expenditures is also due out with analysts calling for a flat 1.9% annualized reading for Q4. Pending home sales are also going to be released later today and analysts are forecasting an improvement in February numbers to 2.1% from -4.7% in January.