Brexit worries weigh on the pound

Sterling is advancing moderately today, and GBP/USD is moving closer to the psychological hurdle at 1.4000 again.

Cable came under persistent downside pressure as of late following a renewed buying interest in the greenback, while results in the UK docket came in below initial estimates.

In addition, Brexit woes and uncertainty around PM May’s government continue to hover over the British Pound and keep pouring cold water over occasional bullish attempts.

This time, the debate is around the likeliness that the UK could stick (or not) to the customs union once it has left the European Union.
Nothing scheduled today in the UK calendar, whereas trade balance figures are expected for the US later today.

Britain’s shoppers carried on spending more on food in January, reflecting the rise in inflation since the Brexit vote, while they again cut back on non-essential purchases, a survey showed this morning.

The amount of money spent with retailers in January rose by 0.6 percent compared with a year earlier, matching growth in December and November, the British Retail Consortium (BRC) said.

Britain’s inflation rate was pushed up by the fall in the pound after the 2016 Brexit vote and hit a nearly six-year high of 3.1 percent in November. The Bank of England expects that to prove a peak and is hoping that wage growth will catch up soon.

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