The GBP/USD is trading down on the week, testing 1.3360 as the upcoming Tuesday session brings the UK’s first foray into economic data for the week.
The Sterling tapped into a new low this week as the pair’s recovery to 1.3471 appears to be over, and the GBP/USD is shifting lower in sharp jolts as sentiment over Brexit developments continues to sour, with the UK’s Prime Minister, Theresa May, locked in a grim battle between hard-line Brexiteers and EU leadership in Brussels. This week sees a rash of key voting itemsover Brexit in the UK’s parliament, and depending on how the voting goes, PM May could see an even longer fall down the Brexit hole with the British parliament set to force itself into the negotiation process.
Average earnings for the UK are due at 08:30 GMT today, with the headline earnings (excluding bonuses) expected to print at 2.9%, in-line with the previous figure. The UK’s economy is battling back from a worse-than-expected downturn in macro figures for the first quarter of 2018, and the Bank of England (BoE) is desperately hoping for a quick turnaround in order to get their plans for prompt rate hikes back on track.