Pound Sterling (GBP)

GBP/EUR - Today's data summary

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As of 00:44 19 Oct 2018

GBP/JPY - Today's data summary

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Price Yen
As of 00:45 19 Oct 2018

GBP/USD - Today's data summary

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Price US dollars
As of 00:45 19 Oct 2018

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Sterling slides back

Pounds, euros and dollars
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Let's check in on the foreign exchange markets now - and the pound has slipped back in afternoon trade.

It's down 0.18% against the US dollar at $1.3093, having risen above $1.31 earlier in the day.

It's at €1.1388 - a fall of 0.14%.

The pound: 'Exhaustion and uncertainty'

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Don't read too much into the pound's moves today, writes Connor Campbell, Financial Analyst at SpreadEx.

It's trading at $1.3129, recovering from losses earlier in the morning.

"The pound seemed pretty impervious this Thursday, its lack of movement likely more due to exhaustion and uncertainty then resilience," he said.

"Despite the, admittedly well-trailed, disappointment of Wednesday’s EU summit, and a far lower than forecast UK retail sales reading from September, sterling barely budged as the day went on.

"Part of that is because, against the dollar at least, it suffered a notable fall yesterday; yet cable still has plenty of reason to move lower, making its flatness all the more notable."

Sterling steady

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Sterling has recovered to $1.3114, after earlier dipping as low as $1.3076, after Prime Minister Theresa May confirmed she was open to discussing an extension of the Brexit transition period.

Elsa Lignos, head of FX strategy at RBC, said extending the transition period made the need for a so-called backstop - aimed at avoiding the imposition of a hard border across Ireland after Brexit, and one of the thorniest issues to overcome in agreeing a deal - less likely.

"It remains to be seen if Brexiteers in her party can be persuaded to sign on," she said.

Against the euro the pound is down 0.25% at €1.1375, as its losses extended after disappointing retail sales figures.

Pound wilts after inflation data

Pound dollar

The pound has fallen following weaker than expected inflation data.

The pound was lower against the dollar even before the inflation figures came out.

But it slipped further and fell as low as $1.3113, down almost three quarters of a cent for the day.

Some analysts are surprised the pound is not down more.

"That those losses weren’t sharper, however, is pretty impressive, given that Wednesday is the day of the crucial EU summit, with Donald Tusk already stating there is ‘no grounds for optimism’ that there would be a breakthrough in terms of the Brexit divorce deal," said Connor Campbell, financial analyst at SpreadEx.

Pearson leads FTSE 100 higher


For years Pearson, which supplies education services, was one of the laggards among FTSE 100 shares.

But there are signs that a turnaround plan is beginning to take effect.

In a trading statement the company said it is on track to return to underlying profit growth this year.

Chief executive John Fallon has been cutting costs and debt, as well as moving the company towards digital learning products.

Nicholas Hyett, equity analyst at Hargreaves Lansdown, said: "The education giant has been shifting away from more traditional classroom materials in favour of digital, and progress there looks more positive.

"There's still a lot to do before Pearson can be said to have completed its digital transformation, and a strategic shift like that comes with risks, given the falls in share price since 2015 Pearson shareholders know that only too well.

"But after today's numbers, a pass mark is looking increasingly achievable."

Pound pushes above $1.32

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The pound has perked up after the latest UK data on jobs and wages.

It rose above $1.32, almost half a cent above Monday's close.

"There has been an underlying strength in sterling this week despite negative developments no the Brexit front as far as reaching a deal is concerned, with the pound recovering steadily after starting the week on the back foot. Comments this morning from a German official that talks are on track to meet a November timeframe are another pleasing development but there remains some significant hurdles to jump first," said David Cheetham, chief market analyst, at XTB.

Pound falls against dollar and euro

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The pound has slipped a third of a cent to trade at $1.3111 after Brexit talks between the UK and the EU faltered over the Irish border.

Sterling is also down a third of a cent against the euro, at €1.1352.

Kathy Lien, managing director of foreign exchange strategy at BK Asset Management, says: "The clock is ticking and a deal is drawing close but having been burned by false hopes, investors are ignoring the conflicting headlines and waiting for official confirmation."

Pound retreats

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Sterling has fallen as investors took profits after a rally that has left the pound poised for a second consecutive week of gains on growing optimism about an agreement on a Brexit deal.

The currency slid as low as $1.3171, down 0.5%. Against the euro, sterling was flat at €1.1418.

Scotiabank analysts said in a note: "We still rather think the road to an agreement is highly uncertain as plans appear to revolve around the UK remaining in an effective customs union with the EU indefinitely after 2020. That hardly equates to even the basic notion of 'Brexit' and if it is PM May's intention to push ahead with this idea, it may struggle to get through parliament."

Pound above $1.32

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Sterling remains above $1.32 after EU Brexit negotiator Michel Barnier's comments yesterday that progress had been made on a deal with the UK over its withdrawal, as well as on the Irish border issue.

Hopes are building that a Brexit deal can be reached before an EU summit on 18 October and sterling is benefiting as some investors unwind short bets on the currency.

The pound is up 0.3% at $1.3233 but down a touch against the euro at €1.1439.

Pound gains against euro on Brexit hopes

Pound and euro curencies
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Sterling has hit a four month high against the euro, up 0.21%, at €1.1462, on hopes that the UK can soon agree a Brexit deal with the European Union.

However, Kengo Suzuki, chief FX strategist at Mizuho Securities, cautioned: "We can't be too optimistic about the Brexit process, because even if a deal can be struck at an anticipated special EU summit in November, it has to get through the British Parliament."

The pound has trimmed gains against the dollar and is now trading up 0.10% at $1.3156.