The British pound has sunk yesterday, weighed down by fears that\nonly very little progress was being made in cross-party Brexit talks.<\/p>\n\n\n\n
The GBP is still weak this morning, as the GBP \/ EUR pair dropped\nto 1.1539 EUR, and GBP \/ USD settled at $1.3057. GBP \/ CAD remained stable at\nCAD1.7397. Meanwhile, GBP \/ AUD and GBP \/ NZD were both weak, reaching $1.8140\nand NZ $1.9375 respectively.<\/p>\n\n\n\n
With the release of the latest CPI figures in the UK this\nmorning, the pound is likely to gain ground if inflation rises in line with the\nexpectations last month.<\/p>\n\n\n\n
The pound fell against most major rivals yesterday as sentiment\nin the British currency dropped due to comments by Labor leader Jeremy Corbyn,\nwho pointed out that talks between parties with conservatives had stalled.<\/p>\n\n\n\n
The statement reduced the effect of some bullish labor figures in\nthe UK earlier in the session, with the pound falling despite data showing that\nunemployment remained at its lowest level in 44 years in February. Meanwhile,\nwage growth remained at a decade high.<\/p>\n\n\n\n
Further pressure on the GBP \/ EUR was caused by the release of the\nrecent ZEW Economic Sentiment index in the Eurozone, as the EUR found support\nand the index jumped to a one-year high in April amid optimism that global\neconomic conditions were improving.<\/p>\n\n\n\n
At the same time, GBP \/ USD losses were somewhat balanced after\nthe release of the latest US economic data, which showed that the US dollar was\nstruggling to create momentum in the broader trade after US industrial\nproduction contracted in February.<\/p>\n\n\n\n
What is going to happen next?<\/strong><\/p>\n\n\n\n The main event in the short term will be the CPI figures in the\nUK, with the possibility of a pound rally if inflation rises in line with\nexpectations.<\/p>\n\n\n\n Economists expect inflation have risen in the UK last month,\nrising to 2% and falling within the Bank of England’s target range for the\nfirst time in 2019.<\/p>\n\n\n\n While the Bank of England is currently suffering from uncertainty\namid Brexit, rising inflation could leave the door open for a rate hike later\nin the year if a Brexit deal is completed within the next months.<\/p>\n\n\n\n At the same time, US dollar traders will focus on issuing US\ntrade balance figures this afternoon, with the US dollar likely to face some\npressure if the local trade deficit widens again as expected in February.<\/p>\n\n\n\n Finally, the Euro zone\nwill release its trade figures this morning with the possibility of a rally in\nthe Euro if exports continue to rise at a good pace in February.<\/p>\n","protected":false},"excerpt":{"rendered":" The British pound has sunk yesterday, weighed down by fears that only very little progress was being made in cross-party Brexit talks. The GBP is still weak this morning, as the GBP \/ EUR pair […]<\/a><\/p>\n<\/div>","protected":false},"author":1,"featured_media":1163,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[49],"tags":[107,112,28,27,52,25,26,29,48,24,113],"_links":{"self":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1162"}],"collection":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/comments?post=1162"}],"version-history":[{"count":1,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1162\/revisions"}],"predecessor-version":[{"id":1164,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1162\/revisions\/1164"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/media\/1163"}],"wp:attachment":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/media?parent=1162"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/categories?post=1162"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/tags?post=1162"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}