Sterling has faced a tough week after dropping against major currencies as it battles to find rest bite from ongoing Brexit uncertainty. The pound has reacted negatively to reports suggesting cross-party talks between the Conservatives and Labour have hit a wall, with lack of progress leaving Sterling far from impressed. At 8.58am UK time, the pound is continuing to trade lower at €1.1579 against the euro. Versus the US dollar, Sterling is marginally down at $1.3002.
Sterling is most likely to be moved by the release of GDP figures from the first three months of this year, giving an indication as to how well the economy has performed in the continued wake of Brexit twists and turns.
Analysts are suggesting the reading could be good news for the pound, but warned anything less than expected could send Sterling falling.
Tom Holian, currency analyst at Pound Sterling Forecast, said: “Friday’s GDP expectations are for growth of 1.8 percent year-on-year and so anything different could cause volatility.”
Connor Campbell, analyst at Spreadex, said: “The country’s first quarter GDP reading is expected to come in at 0.5 percent against the 0.2 percent seen in Q4, though its monthly counterpart is set to slip from 0.2 percent to 0.0 percent.
“Manufacturing production, meanwhile, is forecast to drop from 0.9 percent to 0.1 percent.”
The pound remains under pressure today as doubts continue to swirl over whether Prime Minister Theresa May can reach a Brexit agreement with her political opponents.
The Conservative leader has been battling to push a withdrawal deal through Parliament and now faces a race against time to secure an agreement ahead of the deadline of 31 October, 2019.
Sterling had on Thursday dropped to $1.2967, its weakest level in May.
Published at Fri, 10 May 2019 07:58:00 +0000