With the Brexit deadline swiftly approaching, FX traders are growing increasingly concerned that any sort of a favorable withdrawal deal will be worked out in time. As a result, the Pound was once again under heavy sell pressure. Though lawmakers had passed a law which would require the Prime Minister to request a postponement if an agreement is not reached by October 19th, Boris Johnson has said he is looking to the British Supreme Court to challenge it.
The GBP/USD was lower in London trade at 11;19 am, trading at $1.2300, down 0.2627%; the pair is moving off the session trough of $1.22865 while the high was recorded at $1.23379. The EUR/GBP is up at 0.8919 Pence, a gain of 0.2169%; the pair has ranged from 0.88993 Pence to 0.89305 Pence in the session.
Market to Focus on Fed's Powell
Markets will focus their attention to the upcoming speeches from the head of the US Federal Reserve Bank, Jerome Powell. After the disappointing outcome from last Friday's US employment data which showed not only far fewer new jobs than expected in September but a significant drop in average hourly earnings, many traders are anxious to hear what the Fed's outlook is given the data. Some currency strategists believe a more cautious approach is more likely, with the future rate cuts likely.