Pound Traders Still Hopeful

Traders are still trying to push the Pound Sterling higher against the US Dollar as the sentiment shifts to favorable as regards the Brexit negotiations. Also helping to boost confidence in the Pound is the latest economic data which showed that the UK's services sector improved 51.3 in February, solidly above the 40.9 that had been anticipated from the latest survey of economists and above the previous reading of 50.1. Overall, the Brexit noise is directing the Pound, but there are more signs of encouragement for investors that a delay will likely be the preferred outcome over a hard crash.

As reported at 11:35 am (GMT) in London, the GBP/USD was trading at $1.3163, down 0.1017%; the pair has ranged from a low of $1.3150 to a peak of $1.3199 in this trading day. The EUR/GBP is trading at 0.8607 Pence, a gain of 0.616 Pence; the pair is moving off the earlier low of 0.85857 Pence while the high was recorded at 0.86140 Pence.

Strategists Suggest Caution

Some currency strategists are warning investors not to be too complacent over the latest Brexit news, noting that the Prime Minister still has an uphill battle on her hands. She is faced with objections from within her own party as well as among the opposition, and passage of her demands at next week's votes is still very uncertain. Given this, some strategists think that the market's overall sentiment may be misplaced, and suggest more restraint be exercised.

Disclosure: None.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.