Finance

The pound is falling slightly as markets digest new EU guidelines on Brexit negotiations

LONDON — The sterling made small losses against the dollar and euro in Friday morning trading, as markets digest the EU’s draft guidelines on Brexit negotiations and the Eurozone waits on this afternoon’s inflation figures.

The pound is down 0.04% against the dollar to $1.2464 at 12.25 p.m. BST (7.25 a.m. ET) and down 0.10% against the euro to €1.1668 at the same time.

Here is how that looks:

Screen Shot 2017 03 31 at 12.22.52Investing.com

Screen Shot 2017 03 31 at 12.23.09Investing.com

Lukman Otunuga, a research analyst at FXTM, says in an email: “Sterling was under pressure during Friday’s trading session as investors digested the European Union’s draft guidelines [on Brexit]. Although UK GDP was confirmed at 0.7% in the final quarter of 2016, this had no real impact on Sterling with investors focusing on the Brexit developments.

“While the pound may be on route [sic] for its first quarterly gain against the Greenback since June 2015, a vulnerable dollar played a key part. From a technical standpoint, weakness below 1.2400 could encourage a further decline towards 1.2300.”

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