Pound slid slightly, on course for the biggest monthly

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Pound slid slightly, on course for the biggest monthly

Pound Sterling, EURO & Brexit trending points

  • Pound soured slightly on Friday (the 1stof March), after survey data had showed an increase in the British factory job cut
  • Despite a little nudging lower, the Great Britain Pound is headed for its biggest weekly gain in a month on averted fear of leaving eurozone without a deal
  • GBP plunged by 0.30 percent so far against USD today to 1.3221, after testing a daily high of 1.3287 earlier in the day.
  • Euro gained again against GBP today by 0.31 percent to 0.86 after falling for four straight days in a row, while analysts are still predicting a downswing below 0.85 pence per EUR in a near term outlook

Pound Slid more than 0.3 percent on softer factory data, yet on course for the biggest gain in a month, as a no-deal Brexit fear waning

The Pound Sterling had soured today against a gauge of global currencies except Japanese Yen and faltered to 1.3209 against USD, just above its initial support level at 1.32, after testing a daily high at 1.3286, in the early Asian trading session.

The British currency surged to multi-month high against USD and EUR this week, as UK PM Theresa May had delayed Brexit vote and reinforced votes in favor of her Brexit Amendments. Meanwhile, the Opposition Labor Party leader had told earlier this week, that they would be backing the Article 50 extension and a second Brexit referendum, if the current Brexit deal failed to pass through the UK House of Commons.

However, a Washington Post report revealed yesterday, that UK PM Theresa May had been raising supports and just a notch shy of obtaining majority over her Brexit Amendment deal, evaporating a no-deal Brexit possibility. Over fresh hopes of a Brexit deal, the GBP tested a 21-month high against EUR and a 10-week high against USD.

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GBP/USD intra-day price chart (showing immediate impacts of a faltered UK PMI reading)GBP/USD intra-day price chart (showing immediate impacts of a faltered UK PMI reading)

Today, the 1stof March, 2019, the Pound inched lower by 0.3 percent so far to 1.3220. However, for the week, the British currency is 1.4 percent up. Against the Euro, the Pound sterling had scored a 0.84 percent weekly gain.

GBP/USD daily price chartGBP/USD daily price chart

Bottom Line

Adding to the general tone of optimism over an upbeat GBP, analysts are forecasting a Cable heading into the 1.36/1.37 territory with limited downside risk. Meanwhile, the BoE governor, Mike Carney had said that the BoE would probably proffer more support to the economy next week, which would likely to snowball GBP towards a spacedive in a near-term outlook.

Concomitantly, the analysts are also cautioning the investors of an intense volatility ahead of another chaotic Brexit vote, although the GBP would highly unlikely to suffer further below 1.28 region. Nonetheless, the gains might be limited by a weak factory data posted today (the 1stof March, 2019), which showed a plunge of UK Purchasing Managers’ Index to 52 from 52.6 a month earlier, while 50.0 level is considered to a landmark milestone for a technical recession.

Read more on British pound here

[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]

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