The Pound Sterling recovered from a 2-week trough after an unexpectedly upbeat report provided a much needed boost, albeit a short-lived one with the pair falling back soon after. Despite the bounce, currency strategists say that the Pound is still poised to record its fifth consecutive day of losses given the dented demand for Cable relative to growing worries over the Brexit negotiations. Markit had reported earlier that the UK's Services Sector reading came in at 54.3 in August, well above the 53.9 analysts had expected.
As reported at 11:18 am (BST) in London, the GBP/USD was trading at $1.2803, down 0.40%; the pair slid from the session high of $1.2870 while the low is at $1.2786. The EUR/GBP is trading higher at 0.9040 Pence, up 0.33%; the pair has ranged from a low of 0.9000 Pence to a peak of 0.9052 Pence in today's session.
Brexit Worries Grow
Analysts say that despite the key fundamental data due out in the days ahead, the Brexit negotiations are at a crucial stage where they will weigh considerably more heavily on the Pound. Growing doubt over Theresa May's ability to lead the party during the Brexit talks are negatively impacting the Pound's current position and outlook, as is the continued opposition to Britain's Brexit proposals by the European Union leadership.