The Pound Sterling was trading close to a 2-week peak versus the US Dollar during light holiday trade on Wednesday, holding on to earlier momentum on signs of some progress in the the Brexit discussions in Parliament. Several UK-based newspapers had reported that there is hope that a consensus between the Prime Minister and the Labour Party will be made in a week's time. In the nearer term, markets will be watching the outcome of tomorrow's policy meeting of the Bank of England. Though no surprises are expected from Mark Carney and the Monetary Policy Committee in regards to current rates, the outlook and the central bank's position on the Brexit will play into sentiment.
As reported at 11:24 am (GMT) in London, the EUR/GBP was trading lower at 0.8598 Pence, down 0.535%; the pair is off the earlier trough of 0.85868 Pence while the high was struck at 0.86063 Pence. The GBP/USD was trading higher at $1.3073, up 0.3177%; the pair has ranged from a low of $1.3030 to a peak of $1.3076 in today's trading day.
Kiwi Dollar Hit by Disappointing Labor News
In New Zealand, the Kiwi Dollar was lower on news that the latest labor data failed to meet analysts' expectations. Statistics New Zealand reported that the unemployment change for the first quarter of the year came in at -0.2%, well below the 0.5% that had been predicted by analysts and a fall from the 0.1% in the previous period. The unemployment rate fell to 4.2%, largely as had been forecast, from 4.3%. As a result, the NZD/USD was trading at $0.6663, down 0.1289% and off the session trough of $0.66282.