GBP/USD slipped early on yesterday morning as the greenback continued its charge higher. A better than expected UK Services PMI print then gave the pound a bit of a lift, but so too did a mild about-turn in risk sentiment. The biggest market-moving news yesterday, at least as far as GBP was concerned, came from a Bloomberg news release that reported Britain and Germany were willing to drop key Brexit demands. Specifically, the report said “the British and German governments have abandoned key Brexit demands, potentially easing the path for the EU and UK to strike a deal”. GBP/USD gapped 100 points higher, back through 1.29 on the news.
What goes up……well, it didn’t last long. Within a couple of hours a German government spokesman said that their position on Brexit had in fact, not changed. The net impact on the pound was still positive however, and GBP/USD isn’t too far off yesterday’s highs in Thursday’s early European session.
It’s a broken record, but any Brexit related news will likely dominate today’s session. There’s no UK data due out today, and so as far as economic data goes, focus will turn to US employment numbers, due for release over the next couple of days.