The pound has rallied this morning against the euro, reversing losses suffered over the weekend. Gains come as both Prime Minister May & Michel Barnier have said the Brexit agreement is in the “endgame” and “almost ready”. Although there is still no word on what, if anything, has been agreed on the Irish border, this has seen the pound advance to 1.1488 from a low of 1.1440 in the first hour of trading. Meanwhile the pound has increased against the US dollar to a high of 1.2915 shortly after markets opened.
This morning unemployment data and average earning for the UK has been released. Average earnings have improved by 0.2% to 3%, however unemployment grew to 4.1% from 4%. PM May will be briefing her cabinet this morning on the latest Brexit negotiations, any Brexit update from this the investors will be listening closely for. The EU has however warned that unless there is dramatic progress by Wednesday, there is unlikely to be a summit this month to approve a Brexit deal.
At 11.00 GMT the German ZEW economic sentiment data was released. As forecast there was an increase in growth for Europe’s largest economy from -24.7 to -24.1. This afternoon FOMC member Lael Brainard will be speaking at a Fintech conference. As always investors will be listening closely to what is said, the FED has a planned interest rate hike for December, any change on this stance could impact the dollar.