The pound faced further losses for the 8th consecutive day yesterday as Prime Minister Theresa May announced she is looking to get her deal back in front of Parliament for the 4th time. The deal, which has been voted down three times previously, is expected to be back in front of MP’s the week commencing June 3rd. Investors have seen this latest bid to push her deal though as a signal the cross-party talks with Jeremy Corbyn’s Labour party are struggling to break the deadlock. The Labour party still maintain they would not ratify a deal without a compromise being agreed.
Added to the pressure for Theresa May, senior members of her party are pushing for her to set a clear date to stand down and to possibly face a renewed confidence vote next month. Although the new deadline to leave the EU is October 31st, the ongoing deadlock increases the probability of a no deal exit. The latest political developments have seen the pound fall to 3-month lows of 1.1437 against the euro and 1.2821 against the US dollar.
On the data calendar, it is another quiet day for the pound and euro alike. MPC member Haskel will be speaking later today, as a voting member for the Bank of England some volatility can be expected depending on what is said. From the US, at 1.30 BST, the Philly Fed manufacturing index data will be released. Forecast to be released at 10.0, an increase from last month’s 8.5, this could lend some strength to the dollar.