Sterling hit a two week high yesterday in reaction to news that progress had been made in cross-party Brexit talks. Talks between the government and the Labour party are said to have been productive, with Prime Minister Theresa May wanting to reach a conclusion by the middle of next week.
Eurosceptics fear that May is preparing to succumb to Labour demands on Brexit, after they were told that an ‘unpalatable’ outcome would be better than a ‘disastrous’ one. It is thought that she may be waiting to announce this after local elections have taken place tomorrow.
Meanwhile, the Labour Party have decided to back a second referendum in their European Election manifesto, but only if they ‘can’t get the necessary changes to the government’s deal, or a General Election’.
The pound remains strong this morning ahead of the release of UK manufacturing PMI data, which is forecast at 53.0.
