Sterling spiked higher overnight after Theresa May changed tack and has said she will go to the European Union and request a further extension to Article 50. The PM also confirmed that she is willing to work with the leader of the opposition, Jeremy Corbyn, on a blend between the current deal and Labours alternative Brexit plan increasing the likelihood of a softer Brexit. This announcement came after a seven hour cabinet meeting which will no doubt further divide her party. The intention is to agree a way forward ahead of next Wednesday’s EU meeting where the extension will be requested.
The Pound has given up some of its early gains this morning following the release of Services date which has been posted below the all important 50 level that signals expansion.
The Euro had a steady day yesterday as producer price inflation came in line with expectations for the month of February. Following last week’s poor manufacturing numbers Services PMI data has surprised to the upside this morning at 53.3 for the region.
In the US Durable goods figures were released below expectation yesterday. Today we also see Services data for the US along with the ADP Non-Farm Employment Change which is viewed closely as a precursor to the official government release for employment numbers which is due on Friday.
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