Sterling slipped yesterday as the prospect of the upcoming general election and poor data weakened the pound. UK construction PMI showed that the sector shrank for the sixth month in a row in October. The figure came in as expected and reflected the uncertainty surrounding the initial 31st October Brexit deadline.
A spokesperson for the Prime Minister said that the UK still must be prepared to leave the EU without a deal at the end of January, and that there would not be another extension after that.
Today, Jeremy Corbyn will outline his plan for getting Brexit “sorted” in 6 months. This will involve negotiating a new deal based on a customs union and a referendum with the option to vote for his deal or remain in the EU.
Yesterday afternoon, the House of Commons began its process to elect a new Speaker. Former deputy Speaker, Sir Lindsay Hoyle, received the most votes, and so will take over immediately from John Bercow as Commons Speaker.
Services PMI will be released this morning and is expected to show a small increase, which could have a positive effect on sterling.
