British Pound Limps into Friday

The British pound is on track for its worst week in over two years as the Friday trade session starts in Asia. Traders are worried about a hard Brexit from the European Union. The U.S. dollar is being buoyed by solid economic data.

The British pound is now below $1.30 for the first time in two weeks in the GBP/USD currency exchange rate. Traders are worried that the hardline stance being taken by the United Kingdom over the December 2020 hard deadline will hamper efforts for a meaningful free trade agreement with the European Union.

The GBP/USD has surrendered all of its gains seen after the Conservative Party won a commanding majority in the House of Commons on December 12. The British pound has done worse against the euro as it is headed for worst week in over three years.

The Swiss franc has done well against the euro. The Swiss franc is trading at a monthly high of 1.0881 francs. The USD/CHF is also at its lowest price point since September.

Thanks to solid housing starts and better than expected manufacturing data, the dollar index, which measures the greenback in a basket against six currencies is also firmer for the week. At last glance, the dollar index was steady trading at 97.404.

As the British Pound Falters Traders Turn to Economic Data

The economic calendar, for Friday, has a number of key events scheduled. Canada will be releasing both monthly core and headline retail sales data. The United States will publish the final quarterly gross domestic product data. Traders will also see the Federal Reserve Board’s preferred measure of inflation being released.

This is the core and headline PCE price inflator. The world’s largest economy will also release monthly personal spending data.

Also making waves, in regards to trade, is U.S. Senator and Presidential candidate Bernie Sanders. He said that he will not vote in favor of the USMCA trade deal that was just passed by the House of Representatives on Thursday.