After making some positive gains yesterday, the pound has dropped this morning. This is possibly due to the debate which has occurred between Conservative leadership hopefuls, surrounding the possibility of a no-deal Brexit.
Michael Gove has said that he would look to extend the 31st of October deadline, if that meant we could leave with a deal. On the other end of the spectrum, Dominic Raab said that he may sideline Parliament, taking the UK out of the EU without a deal and against the wishes of MPs if necessary.
A by-election will take place in Peterborough today, after the previous MP was forced out by a petition. It is thought that the Brexit Party could win this, as the European Parliament Elections saw them take 38.3% of the votes in the area. A Brexit Party win will spark further debate about a no-deal Brexit and possibly send the pound lower.
The pound rose to a seven day high yesterday due to better-than-expected Services PMI data, which came in at 51.0. This PMI data was more positive than Construction and Manufacturing figures, which both indicated contraction.
