Sterling was lower in London trading on concerns that a trade deal won’t be reached before year’s end. Also weighing heavily is worry that the British government will not request a transition period extension when the request deadline expires at the end of this month. Earlier in the week, there had been some homes that a compromise could be reached on the subject of fisheries; that had helped to improve overall risk sentiment and helped the Pound push 3% higher against the greenback. What currency strategists are worried about is that a flat out no-deal hasn’t yet been priced into the currency.
As of 11:06 am in London, the GBP/USD was trading at $1.2529, a loss of 0.3563% and off the session peak of $1.25889. The EUR/GBP is higher at 0.8941 Pence, up 0.0795%; the pair has ranged from a low of 0.89223 Pence to a high of 0.89627 Pence. The GBP/JPY was lower at 136.575 Yen, down 0.2563%.
Markets will be looking to see the new data on the US employment front. The US Labor Department will be releasing its report on initial jobless claims for the week, with analysts expecting to see 1.8 million new filings, down from 2.12 million last week. Experts are predicting that continuing claims for unemployment benefits will hit 20.05 million for the week. Tomorrow’s release of non-farms payroll data will be even more telling. The latest poll conducted suggests that the unemployment rate could surge to 19.8%, and NFP is likely to show -8 million fewer jobs in the month of May.