The Pound Sterling recovered after a brief move lower against its EU and US counterparts after the UK's House of Commons approved the Internal Market Bill.
Though analysts had expected the bill to pass, despite the fact that some parts of it knowingly break international law, they believe the pressure on Sterling will be brief and minimal. According to insiders, the approved bill will only be put to use in the event a deal regarding cross border trade is not hammered out. Expectations are high that a Brexit deal will be worked out, however. Also weighing on Sterling today is the announced resurgence of the Coronavirus within the UK; the Prime Minister will be addressing UK citizens to discuss his intentions regarding more lockdown measures.
In London trading as of 11:14 am, the EUR/GBP was trading at 0.9122 Pence, down 0.0646% and off the earlier high of 0.91579 Pence. The GBP/USD was lower at $1.2831, a loss of 0.2108%; the pair has ranged from a low of $1.28047 to a peak of $1.28739.
US Labor News in Focus
Ahead today, markets will focus on the release of labor data from ADP, often viewed by analysts as a bellwether for the upcoming NFP report. ADP is due to release the employment change for September, and analysts have predicted the number will rise to 650,000 from the previous reading of 428,000. On Friday, the US Labor Department will be releasing its report on new private-sector jobs. From the latest poll of analysts and economists, the prediction is calling for a significant fall to 850,000 from 1,371,000 last month. Average hourly earnings on a month-over-month basis are also expected to show a decline.