The Pound has retracted against Euro counterpart during “Super Thursday” following a host of UK data releases and of course, the much anticipated interest rate decision by the Bank of England (BoE).
GBP/EUR rates have fallen back towards 1.13, hitting 1.1315 at this afternoon’s low. This is a drop of almost a cent and a half from its earlier high, as investors continued to sell-off their Sterling positions throughout afternoon trading.
Today’s dip came following news yesterday that the House of Lords had voted to stay in the single market. It must be noted that it is highly unlikely that the House of Commons will uphold the amendment to the EU Withdrawal Bill, with neither the Conservatives or Labour parties backing the changes.
It did however add to the uncertainly, which is currently threatening to destabilise and cloud the UK’s position during the on-going Brexit negotiations.
This uncertainty was already handicapping any major advances for Sterling against the Euro. Today’s poor economic data releases and a fairly dovish statement by BoE governor Mark Carney will only add to this and it now unlikely GBP/EUR rates will head back to the recent highs of 1.15+ in the short-term.
UK Industrial production figures came out below the markets predicted result and trade balance figures also made for grim reading. These coupled with Carney distancing the central bank from any specific timeline on a future interest rate hike, has produced more questions than answers for investors over the coming weeks.
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