The British pound suffered small losses in the first two trading days of the week but seems to have started to shake off the cobwebs on renewed Brexit optimism.

According to several news outlets, the European Union will propose to remove up to 50% of customs checks on British goods at Northern Ireland border. Maros Sefcovic, European Commission Vice President of Interinstitutional Relations and Foresight, said that they will be offering “very far-reaching” changes to resolve the issue surrounding the movement of UK goods, including medicine. Read more…

The GBP/USD pair witnessed good two-way price moves on Tuesday and finally settled with modest losses for the second successive day. Against the backdrop of hawkish signals by the Bank of England (BoE) officials over the weekend, a mostly upbeat UK jobs report extended some support to the British pound. The UK Office for National Statistics reported that the ILO Unemployment Rate edged lower to 4.5% during the three months to August from 4.6% previous. Moreover, the Average Earnings Including Bonuses surpassed market expectations and showed a 7.2% YoY growth for the reported period. Bulls, however, struggled to capitalize on the move amid the UK-EU stand-off over the Northern Ireland (NI) protocol. Read more…

The GBP/USD pair reversed its direction after climbing toward 1.3650 earlier in the day and retraced the majority of its daily advance. As of writing, the pair was up only 0.05% on the day at 1.3592.

Renewed dollar strength on US September inflation report seems to be weighing on GBP/USD at the beginning of the American session. The monthly report published by the US Bureau of Labor Statistics revealed that the annual Consumer Price Index (CPI) edged higher to 5.4% in September from 5.3% in August. Additionally, the Core CPI, which excludes volatile food and energy prices, stayed unchanged at 4% on a yearly basis. Read more…

Read More