Pound Gains on news from Brexit Hearing

Currencies Direct October 19th 2016 - < 1 minute read

Yesterday the pound pushed higher in early trading following confirmation that UK inflation rose 0.2% in September against an expectation of 0.1% and pushing the year on year number to 1.0%. Later in the day further Brexit uncertainties actually played in the pounds favour. News from a hearing in the High Court indicated that the Brexit process was likely to be subject to ratification in parliament. Although any vote is likely to take place after Article 50 is triggered it still leans the markets towards a softer Brexit and hence boosted the pound.
Key focus on UK labour market
Today the key focus will be on UK labour market data and with the economy resilient to the Brexit vote it is expected that the unemployment rate and earnings will remain unchanged at 4.9% and 2.1% respectively. Later focus will turn to the US with housing market data due for release and set to follow a positive trend. In addition, we also have several Federal Reserve members speaking and their views will be scrutinized given a December rate hike is in the balance. Later tonight we have the third and final presidential debate with Clinton currently ahead in the polls.

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Currencies Direct

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