Sterling among the currencies of the main basket showed the worst results against the US dollar. Sometimes the pound, when the rest strengthened against the greenback, could even fall, because the sentiment to the currency of Albion among the market participants was quite skeptical.
Decline of inflation in the United Kingdom gives the opportunity for the Bank of England do not rush with tightening of the monetary policy. The other economic indicators did not show any significant changes, and came out in fairly small numbers.
Therefore, the markets paid attention mainly to the political factor, in particular, the process of exit Britain from the European Union. In this issue, there were fresh news which could provide significant support to the pound sterling.
The UK does not want to go into confrontation with the continent to knock out more favorable conditions, and does it in English leisurely, trying to negotiate with a little blood.
Another interesting news was an offer from the Labor Party. Labour proposes to remain in the European Union not for two, but for four years, while there is a divorce proceedings.
Together with the weakening US dollar, this news can enable the British currency to feel more confident and winback the lion’s share of losses for this month in a pair of GBP/USD.