Weak economic data and concerns regarding Brexit have influenced the continuing decline of Pound Sterling against the US dollar and the Euro.
Yesterday, Pound Sterling reached its lowest in 4 months due to the release of lower than anticipated UK services industry data against the US dollar.
After the decline in March, the expected Services sector reading was to be around 53.5 in April, however, following weak data in the past days, the data stands at 52.8. The Pound regained its strength for a short while but fell back as the trading day ended.
Data today consists of the US labour market conditions (current unemployment rate, labour participation rate, average hourly earnings and the non-farm payrolls) report.
On the other hand, reports of pro-Brexit ministers collaborating with members of the Conservative party to request a clean break from the EU’s custom union has been the topic of conversation amongst Brexiteers.
The UK will only be a part of the EU for another 10 months and time is running out for the Government to make an official deal – if they fail, we could face the reality of a “hard Brexit”.
Yesterday’s local elections showed the Conservatives faring slightly better, especially in the ‘Leave’ constituencies. This could add to the market concerns of a ‘no deal’ on the future of the customs union.