The pound strengthened yesterday on the back of positive Services PMI data, which was revised higher to 50, bringing the figure out of contraction territory. The boost also occurred as investors returned to sterling after opting for safe-haven currencies due to the tensions between the US and Iran.
Composite PMI was also revised higher yesterday to 52.7, pointing to the strongest growth in private sector activity in eight months.
Today, MPs will return to Parliament after their Christmas break. The Brexit Withdrawal Bill will be debated, which includes a clause to rule out any extension to the Brexit transition deadline at the end of December this year.
Following the killing of Iranian General Qasem Soleimani, Downing Street has urged Iraq to allow UK troops to stay in the country. European leaders have called for all sides to show restraint.
