The Pound continued to wallow relative to the greenback on escalating worries that a Brexit deal will not be struck before the deadline. According to one media report, the British government has said that negotiations will cease this week. The issue of trade across the Irish border continues to be a major sticking point and there is great worry that an agreement won’t be hammered out in time; news reports say that Ireland’s Prime Minister refuses to discuss the issue, and the German Chancellor and French President won’t push for talks until Ireland is ready.
The GBP/USD is trading lower, at $1.2238, down 0.4101% at 11:08 am in London. The pair is moving off the session low of $1.22268 while the high is recorded at $1.23031. The EUR/GBP is is up 0.6555% and trading at 0.8982 Pence.
PPI and Fed’s Powell in Focus
In the US, data on producer price inflation is due out later today. Data is expected to show that September’s core PPI, which strips out food and energy components, is likely to be flat at 2.3% on an annualized basis. After that news, the head of the federal Reserve Bank is due to speak at a conference in Colorado. Fed watchers are pricing in a 25 basis point cut at the next policy meeting.