The pound fell on Monday following the negative Brexit headlines over the weekend, namely Barnier’s reaction to the Chequers proposal. The quid was sold off further following the release of a weaker than expected UK Manufacturing PMI print on Monday, which came in at 52.8 vs. 53.9. It was the weakest print for 25 months. Meanwhile, the USD continued to strengthen through the day despite it being a public holiday in the US and Canada.
Cable is licking its wounds a bit this morning, but there’s good support at and just under the 1.28 big figure. Perhaps it will get a lift if the current BoE Governor Carney announces today that he will be staying on beyond June next year, this as speculation mounts in the papers. He’s due to hold a press conference this afternoon.
UK economic data to be aware of is the Construction PMI which missed expectations of 55.8 posting a 52.9. UK Inflation Report Hearings have also been released. As usual, Brexit rhetoric and headlines will no doubt continue to dominate, though.