The Great British Pound continued its downward trajectory in overnight trading, hitting a fresh new 2018 low. Opening this morning at 1.3353, the Sterling is struggling to find its feet in a bearish market, bouncing off the new low of 1.3312.
The UK CPI Data released overnight appears to be the catalyst, coming in slightly below expectations at 2.4% for the year. The reading extends the Bank of England’s economic woes with the Inflation number at its lowest level in more than a year.
The Pound is finding little support from the headlines as well with reports that Theresa May’s government has yet to decide on the post-EU customs options it wants. Both Boris Johnston and Jacob Rees-Mogg have been vocal in their wish to leave the customs union quickly and for May to show more “backbone”. Again, Brexit continues to weigh on the Sterling and the incumbent government.
Traders will look to close out the week with an important statement from Bank of England’s Governor Carney and the April Retail Sales report.