The pound is under a bit of pressure this morning as investors start to get a little more nervous ahead of tonight’s amendment votes. The Cooper Amendment – which will force a no-deal Brexit off the table - is going to be the one to watch, with markets still unsure as to whether it will pass. If defeated, it’s likely to be negative for GBP and vice-versa. Meanwhile the government is busily whipping MPs into voting in favour of the Brady amendment which stipulates that the backstop should be replaced with “alternative arrangements” – albeit the EU have repeatedly said they’re unwilling to budge on this. We don’t know which amendments will be voted on tonight. It’s the decision of the Speaker, but we’ll find out early this afternoon, with the two above being more than likely to be chosen.
Throw in the FOMC meeting, which starts today and finishes tomorrow, corporate earnings data, US-China talks and US Non-Farm Payrolls on Friday, it all makes for what could be a nervy day in FX in London today. The range in GBP crosses might not be wide, but it could be choppy ahead of some fairly hefty risk events this week.