Strong Data Can’t Help UK Pound

UK pound is struggling today against its major counterparts, even though recent data has been so positive. With concerns about the upcoming Bank of England meeting and fall out from the recent Brexit vote, it’s clear that the focus isn’t on the most recent data reports.

Sterling is lower against many of its counterparts today, thanks in large part to the recent Brexit vote and concern about what might come out of the upcoming Bank of England meeting.

The latest home prices data indicates that UK prices increased by o.5 per cent in July. This beat expectations for a decline of 0.2 per cent. On top of that, the latest GDP data was better than expected. On a quarter over quarter basis, the GDP increased by 0.6 per cent, instead of the forecast of 0.4 per cent.

These are some of the first data readings after the Brexit vote, and some wonder if the fallout hasn’t had time to work through the system yet. Also, many wonder what the Bank of England will announce at its meeting next week.

At 13:35 GMT GBP/USD is down to 1.3147 from the open at 1.3222. EUR/GBP is higher, up to 0.8439 from the open at 0.8363. GBP/JPY is down to 137.00 from the open at 139.36.

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