With FX market sentiment eroding on the upcoming Brexit, the Pound managed to recoup some of the overnight losses it experienced. Despite the Prime Minister's ministrations to get a Brexit plan in place, market players are now losing faith in her ability and are looking at the worst case scenario as a real outcome. Yesterday was the first day of the Parliamentary debate on her proposal and her government was declared “in contempt of Parliament.” A global market selloff has also been weighing on Pound sentiment.
As reported at 11:05 am (GMT) in London, the GBP/USD was trading higher at $1.2772, a gain of 0.46% and edging away from the session trough of $1.2673; the high was recorded at $1.2779. The EUR/GBP was trading at 0.8881 Pence, down 0.40%; the pair has ranged from 0.88751 Pence to 0.89320 Pence.
Euro Higher after PMI
Better than expected economic data helped to provide the Euro with a boost against the US Dollar. Markit Surveys reported that the Eurozone's PMI Services Sector had a reading at 53.4 in November, better than the 53.1 expected which was unchanged from the previous period. The Composite PMI for November was also improved at 52.7, besting the 52.4 that had been predicted. The EUR/USD was trading higher at $1.1352, up 0.10%, with the session low recorded at $1.13169 while the peak was at $1.13532.