The Pound Sterling was weaker against both the greenback and the Euro during London trade on Tuesday as Brexit worries resurfaced. Recent comments from Michel Barnier have led to more anxiety for FX traders. The Chief Negotiator for the European Union said that they would never compromise the integrity of their single market, and that Britons must now realize that the cost of leaving the EU had been underestimated greatly. This week’s policy decision from the Bank of England, with analysts calling for a close vote, is also weighing on Sterling. Analysts now expect that at least three members of the Monetary Policy Committee are likely to vote for more easing.
As of 11:14 am in London trade, the EUR/GBP was trading higher at 0.8468 Pence, a gain of 0.4198%; the pair is moving off the earlier peak of 0.84736 Pence while the low was recorded at 0.84309 Pence. The GBP/USD was trading at $1.3007, a loss of 0.3677%; the pair has ranged from a trough of $1.30035 to a high of $1.30667.
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The US Federal Reserve is due to release its latest monetary policy decision tomorrow , with analysts predicting that it will leave the benchmark lending rate at the current level of 1.75%. Unexpectedly upbeat economic data has helped to drive the Dollar broadly higher, especially with the concerns over a trade war with China now diminished. Later today, the US Census Bureau will release data on non-defense capital goods orders for December, with analysts predicting an across-the-board decline. The November Case-Shiller Home Prices Indices will also be released today with an anticipated rise in the numbers to 2.4% from 2.2% (annualized). Currently, the EUR/USD is trading at $1.1013, down 0.0345% and off the earlier low of $1.10124.