A mixed morning for sterling, which is weak against the euro and stronger against the dollar. Its weakness is possibly due to further insistence from Boris Johnson that there will be no Brexit delay past the current deadline of the 31st of October. This once again indicates an increased possibility of leaving without a deal.
A cross-party motion in the House of Commons will be voted on today, which will allow MPs to pass legislation to ensure an orderly exit from the EU. This comes as many Conservative Party candidates advocate leaving without a deal. Labour have said that they will support the motion and seek to block a no-deal scenario. If the motion is passed, we could see a positive reaction from sterling.
Sterling rose against the euro yesterday on the back of positive economic data. Wage growth in the three months leading up to April exceeded forecasts, coming in at 3.1%. The Bank of England have said that interest rates may have to rise more quickly than expected, to keep inflation close to its 2% target. UK unemployment rate remained unchanged at a 44-year low.
