Sterling slips for sixth straight session to year nadir versus dollar

2018-08-09 16:39:01 GMT (
Sterling slips for sixth straight session to year nadir versus dollar

Sterling titled lower in American trade to August, 2017 lows against the dollar, as Brexit concerns continue to overshadow trading, and following earlier positive labor and inflation data from the US today. 


As of 03:01 GMT, GBP/USD inched down 0.05% to 1.2876, with an intraday high at 1.2912, and a year nadir at 1.2842. 


Sterling is suffering from growing chances of an unorganized Brexit and increasing uncertainty about diplomatic and trade relations between Britain and the EU, after UK trade minister Liam Fox said recently that a no-deal Brexit is now more likely, blaming it on those committed to "“the purity of the EU’s ideology”.


British finance minister Philip Hammond called earlier this week on the finance sector in London to look for new paths for growth and expansion in emerging markets to compensate for potential losses in Europe after Brexit.


He accused France of leading an EU-wide effort to stifle the City with red tape, hampering their access to European markets. 


US Labor, Inflation Data 


Earlier US data showed producer prices were unchanged in July, compared to a 0.3% increase in June, and missing estimates of 0.2%. 


Core prices, excluding food and energy, rose 0.1%, while those excluding trade services as well rose 0.3%, indicating solid momentum in the economy. 


US unemployment claims fell surprisingly by 6 thousand to 213 thousand from 219K, beating expectations of an increase to 220K.


Continuing claims for the week ending July 28 rose 29 thousand to 1.755 million from 1.726 million, missing expectations of 1.730 million. 


The final reading for business inventories rose 0.1% in June, compared to no-change in in the preliminary reading, and improving from a 0.6% surge in May.


Accumulated inventories indicate poor demand and are considered a negative sign for the economy. 

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