The Pound Sterling edged lower and hit a 2-week trough versus the US Dollar. That came on the heels of last week’s disappointing economic data which raised investor concerns over the timing of the next rate increase from the Bank of England. While it was not that long ago that markets had already priced in a May rate hike, the latest news has led to some uncertainty, and the recent comments from the BoE Governor, Mark Carney, has only served to increase doubt. In the past week, and despite being a stellar performer earlier this year, the Pound has lost nearly 1.7% of its value relative to the greenback on deflated expectations of an imminent rate hike.
As reported at 11:01 am (BST) in London, the GBP/USD was trading at $1.3962, down 0.25%; the pair earlier hit a trough of $1.3959, while the daily peak is now at $1.4031. The EUR/GBP is trading at 0.87618 Pence, down 0.15602%; the pair has ranged from a session low of 0.87450 Pence to a peak of 0.87752 Pence.
UK GDP Eyed for Guidance
What could alter investors’ perception is this week’s preliminary first quarter GDP numbers which are due out on Friday; currently, economists are predicting that the numbers will remain flat at 1.4% on a year-over-year basis and 0.4% unchanged at a quarter-over-quarter basis. Currency analysts say that upbeat figures could rekindle sentiment. Analysts caution, however, that a Brexit-related non-binding technical vote on Thursday could call into question the government’s leadership under Theresa May and that might have an impact on sentiment for the Pound.