GBP – Sterling Under Pressure

The Sterling once again lost value and finds itself languishing near its recent lows against the USD. There was a banking holiday in the U.K., but the GfK Consumer Confidence reading was published and had an outcome of minus -18, which beat the estimate of minus -23. However, the better result did not bring much cheer and today the Net Lending To Individuals and Final Mortgage Approvals data will be brought forth. Tomorrow the Manufacturing PMI report is on the schedule. Releases from the U.K. have proven a mixed bag for months and this is likely to continue. The Sterling did relatively well this summer on the heels of the new government’s austerity measures, but the GBP has come under pressure recently due to questions arising again about growth prospects. Like its counterparts, the U.K. finds itself in a tough position and investors remain skeptical about their outlooks. Risk sentiment is a critical factor for the Sterling and this will continue to resonate.

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