Sterling dropped to a one-month low yesterday and continues on a weaker footing today, due to doubts that Brexit talks are making any progress. Mounting pressure on the Prime Minister to set a date for her resignation is also weighing on the pound.
Theresa May has said that if Brexit talks with Labour collapse, she will hold another round of indicative votes in the next fortnight. However, she’s been warned that she could end up with a Brexit deal that no-one wants if she presses ahead with this.
The UK Balance of Trade and GDP data will be released today. This is set to indicate the extent of stockpiling in the first quarter of 2019, and is expected to suggest that consumer spending has helped to lift growth. It is expected to come in at 0%, which could have a negative effect on the pound.
