There have been few major data surprises in the past 48 hours but Sterling has been buffeted by Brexit developments.
Sterling weakened over 1% against both the Dollar and Euro yesterday lunchtime after the Queen agreed to Prime Minister Johnson’s request to suspend parliament for over a month in a bid to reduce the time available to pro-Remain MPs to come up with a plan to avoid a no-deal Brexit. The Lower House of Commons will be suspended from between the 9th and 12th September and the 14th October, with the UK due to leave the EU on 31 October, with or without a deal in place. Sterling has in the past 24 hours recovered about half of yesterday’s losses, with GBP/USD trading around 1.22 and GBP/EUR around 1.10.
