The Great British Pound traded sideways overnight in its usual, volatile fashion as Brexit remains in focus. Opening this morning at 1.3265 against the Greenback, Sterling did enjoy a marginal uptick as reports suggest EU leaders are planning to offer the UK a conditional extension at this week’s summit. Potentially this could give Prime Minister Theresa May one more chance to get her deal through Parliament.
UK labour market data was also released overnight and came in stronger than expected, also supporting the Pound. The 222k leap in employment drove the unemployment rate down to 3.9% and wages growth remaining at a decade high. The Bank of England has been hesitant to raise interest rates amid Brexit uncertainty, but this latest employment news may lead to heavy contemplation should any Brexit clarity come to light.
Moving into Wednesday, Brexit remains the key focus with UK Inflation numbers set to augment any movements.