The pound showed some early signs of a recovery yesterday on the back of – you’ve guessed it – Brexit related news. After the government was defeated on three fronts in the Commons on Tuesday, one such defeat meaning that MPs will be able to exert more influence by voting on what they want the government to do, some are theorising this could work in May’s favour; if her deal is rejected and amended, it could deliver a softer Brexit, meaning some Brexiteers may feel the PM’s deal is better.
Then, UK Services PMI printed weaker than expected at 9:30am on Wednesday, which put GBP/USD on the back foot, again. The index came in at 50.4 vs. expectations for 52.5. The dollar also made broad and mild gains yesterday, despite a lack of economic data, and by the end of the day yesterday GBP/USD was trading closer to the 1.27 big figure than it was the 1.28 figure.
It was President George H.W. Bush’s funeral yesterday and with US stock markets closed, US data scheduled for release that day was moved to today, so it’s set up for a potentially busy and volatile day today with US ADP Non-Farm Employment Change, ISM Non-Manufacturing and a speech by Fed Chair Powell all due.