The British Pound moved higher during London trade on Thursday after Theresa May said she was willing to discuss a transition period extension after the Brexit. The Prime Minister did insist, however, that she felt the extension would likely be unnecessary. Analysts are relieved that an extension could be a viable option, as a solution to the Irish border problem could then have time to be worked out favorably rather than attempting to impose a backstop solution. Ms. May said she is confident that a Brexit deal will be reached soon.
As reported at 11:17 am (BST) in London, the GBP/USD was trading higher at $1.31, a gain of 0.18% and falling from the session peak of $1.3130. The EUR/GBP is higher at 0.8777 Pence, up 0.02%; the pair has ranged from a session low of 0.87726 Pence to a high of 0.87924 Pence.
Dismal Data has Brief Impact
Sterling was able to recoup some of its losses from its earlier fall after news of disappointing retail sales figures. The ONS reported that September retail sales fell by 0.8% from the previous month, far more than the 0.4% experts had predicted, and the largest food purchase decline in three years.