The pound edged lower against the U.S. dollar on Tuesday as optimism for prospects of a Brexit trade deal with the European Union faded, again. This came not too long after GBP/USD hit its highest level since early August. With less than seven months to go before Britain is due to leave the European Union, markets should be prepared for even more volatility ahead.
On the local data front yesterday, we saw the release of UK Jobless Rate which remained at 4%, the lowest since the winter of 1974-75. Unemployment continued to fall with 55K fewer people out of work in the three months to July. UK wage growth was also better than expected, rising by 2.9% in the three months to July. Today the macroeconomic calendar is empty with no scheduled releases. Traders will likely have half an eye on tomorrow’s Bank of England statement.