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Sterling Range Bound on Mixed UK Data Before Leadership Vote

January 16, 2019 at 16:09 by Simon Mugo

Queen Elizabeth II looks from a 10-pound billThe Sterling pound today traded in a range as investors recovered from yesterday’s crazy swings following the historic Brexit vote. The GBP/USD currency pair was largely immune to most of the data released from the UK docket as investors remained cautious ahead of a Parliamentary no-confidence vote against Theresa May.

The GBP/USD currency pair today traded between a high of 1.2896 and a low of 1.2824 and was within this range at the time of writing.

The cable was in a range for most of today’s session following Theresa May’s spectacular Brexit deal defeat yesterday. Some of the data released today by the UK’s Office for National Statistics include the retail price index for December, which came in at 0.4% missing expectations by 0.1%, while the annualized print came in at 2.7% missing expectations by 0.2%. However, the pair ignored the weak retail data and rallied higher despite the cautious speech by the Bank of England Governor Mark Carney shortly before the releases. The release of the UK producer price inflation data for December also boosted the pair as both the monthly and annualized output and input prints beat expectations.

The pair’s performance was also boosted by the positive UK consumer price inflation data for December. The release of US export and import price data during the American session triggered slight declines by the cable.

The currency pair’s short-term performance is likely to be affected by the outcome of the no-confidence vote against PM May scheduled for 19:00 GMT.

The GBP/USD currency pair was trading at 1.2862 as at 15:57 GMT and was still within the trading range. The GBP/JPY currency pair was trading at 139.88 having risen from a low of 138.97.

If you have any questions, comments or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

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