The Great British Pound retreated significantly in overnight trading on the back of further Brexit headlines and a bullish US FOMC statement. Opening this morning at 1.3060, the Sterling looks for further support from on-going Brexit negotiations.
The Sterling lost some of its positive sheen overnight as conflicting headlines undermined a potential withdrawal agreement. Meetings between the UK and EU are taking place on an almost daily basis with the latest report by The Time suggesting that a full withdrawal could be published as soon as next Tuesday. Other reports suggest it is weeks away. Nevertheless, hope for a Friday announcement have been dashed which saw the Pound sold heavily.
The other side of the equation also didn’t help the Sterling’s fortunes with the FOMC releasing their statement on monetary policy. Tellingly, their guidance has not shifted, firming market consensus around a December rate hike for the US.
Moving into the close of the week, the Pound has a number of important domestic readings to digest. Month on Month GDP and Manufacturing Production are set to steal the limelight although attentions will also remain on any new Brexit headlines.