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Pound gains against US Dollar

• Posted by currencies in Bank of England, Brexit, Currency, Dollar, Economy, EUR, GBP, Sterling, UK, Uncategorised
• October 12, 2017
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Sterling edged higher today against a tepid dollar, despite a backdrop of uncertain Brexit negotiations.

Signals from the U.S. Federal Reserve that central bankers were still concerned about persistently low inflation helped bump the pound to $1.3244, its highest point since October 4th.

The cable’s gains have been driven primarily by weakness in the dollar rather than strength in the pound.

Brexit Secretary David Davis and EU negotiator Michel Barnier are due to give a news conference around noon, but little progress is expected.

Instead, the pound has hemmed in tight trading ranges as investors fretted that a sharp turnaround in sterling in the currency markets to net long positions may come under pressure.

Data from the Royal Institution of Chartered Surveyors showed today that British house prices face the weakest outlook since the Brexit vote and can be interpreted as another sign of a slowing domestic economy.

The euro climbed to a two-week high this morning after a slew of strong data that supported a growing view that the European Central Bank will announce a plan to wind down its huge stimulus plan at a policy meeting later this month.