The GBP/USD tested 1.2726 yesterday, very close to the lows in October of 1.2696 (low for the year was 1.2662), as the math to a successful UK Parliament vote on Brexit was getting more daunting. Trump’s comments the previous night, when he indicated that May’s Brexit deal wasn’t a good one, got a negative reaction from Cable traders.
The Bank of England, Financial Stability Report, is due to be released this afternoon, along with the Bank Stress Test Results, followed by a speech from BoE Governor Carney. The central bank will be publishing assessments for various Brexit scenarios, measured against a comparison of remaining in the EU. It should be interesting! Around the same time, US Fed Chair Powell is speaking about monetary policy, a keenly awaited speech.
The Cable is trading higher this morning to 1.2790, which is a 0.37 percent increase.