Sterling continues to move higher with a general improvement in investors’ risk appetite as hopes continue to rise that the UK government will be able to secure a Brexit deal. After last week’s sell off of the Pound, that hope has prompted FX traders to buy the currency back. Theresa May and her government have only about six months left before Britain will official be compelled to withdraw from the EU; last week, her proposals for a trade pact were dismissed by the EU negotiators.
As reported at 11:23 am (BST) in London, the GBP/USD was trading at $1.3146, up 0.20% and off the session high of $1.3161 while the low is at $1.3095. The EUR/GBP is trading at 0.89467 Pence, down 0.10%; the pair is ranging from 0.89401 Pence to 0.89752 Pence in today’s trading session.
Focus on US Data
In the US, markets will watch for several pieces of data reflecting movement in various markets, i.e. retailers, housing, manufacturing and oil. Analysts polled are predicting that the S&P/Case-Shiller Home Prices Indices for July will have fallen to 6.2 from 6.3, while the Richmond Fed Manufacturing Survey for September will have declined from a reading of 24 to 22. Also due out is the Redbook Index and API’s weekly crude oil stock reading.
