Sterling is muted against major currencies after suffering a steady decline in the first three weeks of April. As of 9.09am UK time, the pound is trading marginally higher from opening levels to €1.1548 against the euro. At the same time versus the US dollar, Sterling is at $1.2986. The pound had not improved much against the euro by 3.56pm and was trading at €1.1551 and $1.2942.
Connor Campbell, analyst at Spreadex, said: “As the Tories and Labour prepare to resume their Brexit talks, Sterling wasn’t up to much after the bell.
“Against the dollar it remained the wrong side of $1.299, lurking at a two-month low, while against the euro a 0.2 percent increase was little comfort following the steady decline suffered in the first 3 weeks of April.”
In latest Brexit developments, this morning will see Prime Minister Theresa May convene her Cabinet.
Cross-party talks between the Government and the Labour Party will also start again today in a fresh bid to break the Brexit deadlock.
Ministerial discussions are expected in the afternoon, with Mrs May’s de facto deputy David Lidington, Brexit Secretary Steve Barclay and chief whip Julian Smith representing the Government.
Meanwhile, the Prime Minister is facing yet another challenge to her leadership.
It emerged yesterday that she could be forced to battle a vote of confidence after 70 local Conservative association chiefs signed a petition in support of a poll.
They called for an extraordinary general meeting of the National Conservative Convention to discuss the Prime Minister’s leadership of the party, the Telegraph reported.
A non-binding vote is expected to be held at the meeting, which would – if it showed a lack of confidence – put pressure on the 1922 Committee of Tory MPs to find a way of forcibly removing the Prime Minister from office.
Elsewhere Change UK – the Independent Group will launch its European election campaign in Bristol, and Nigel Farage’s Brexit Party will unveil its latest tranche of candidates in London.
Aside from Brexit developments, the pound could find itself inched up by euro movement this afternoon.
The European Union is due to release data on member states’ 2018 debt and deficit ratios as part of an assessment of whether they comply with eurozone rules.
Should the data disappoint, analysts suggest this could weaken the euro, which in turn would send Sterling higher.