As US dollars weakened slightly on Wednesday, it helped Sterling to inch higher. The consumer and business sentiment data released earlier is also in favor of the Pound, which was meeting a decline for quite some time. Sterling Pound recovered from the two-month low at the end of the first day of 2017 trading.
The Britain ambassador returned to the European Union with a resignation letter that increased rumors. Britain is yet to formally launch its negotiation talks regarding the European Union. These factors have led the experts to believe that the Pounds will have a rocky road ahead.
However, the economic data showed that the country’s economy is stronger than it was expected. The Brexit vote in June has greatly affected the prospects of Pounds and experts feared for the worst. The customer credit and construction industry data were released on Wednesday. Both the data showed positive results as against the forecast. The manufacturing industry also reported a growth that reached its 2.5 year high. The construction industry is one of the main industries influencing the economy and the growth data has helped the Pounds to increase slightly.
In the future, the construction industry has to face a problem when the Article 50 is triggered. Even though future has too many challenges, the solid foundation gives some peace of mind. Sterling increased by 0.3% against the dollar and it recorded $1.2276. The pressure on pounds will be mounting until the formal EU exit talks commence.