Sterling is close to its lowest level ever, as government insists it can’t give any detail about its Brexit strategy yet
Latest: Unilever and Tesco fall out over weak pound
Pound falls back below $1.22 as David Davis speaks
Trade-weighted sterling hit record low last night
Summary: Bank of England deputy governor on Brexit
Politics Live: MPs debate Brexit
8.32pm BST
After another volatile day, the pound now seems to have settled around the $1.22 mark.
That’s a cent higher than last night, but still close to the record low struck after Tuesday’s rout.
A brief rally in the pound was quickly reversed on Wednesday after the government refused to make tariff-free access to the European Union’s single market a red line in Brexit negotiations with Brussels.
Investors sold the pound after Brexit minister David Davis told MPs it was “not black or white” whether the UK would stay in the single market.
Related: Pound drops further after Davis hints UK could leave single market
8.12pm BST
The FT have an interesting Brexit story tonight.
They’re reporting that Brussels wants the UK to stump up €20bn in ‘divorce payments’, to cover commitments in the EU budget - from pension contributions to Britain’s share of large projects.
Great @ft scoop: the 20 billion euro cost to U.K. of the "divorce settlement" with the UK: unpaid bills, pensions etc pic.twitter.com/aZ3zBF2WRK
8.08pm BST
Unilever and Tesco aren’t the only companies struggling to come to terms with the slump in sterling.
Other businesses chiefs, including the boss of BT, have also warned that prices are going to rise as firms pass on higher import costs to consumers.
Related: British shoppers told to expect price rises after steep fall in pound
7.43pm BST
The Press Association also noticed that the pound shed its early gains after David Davis began outlining the government’s Brexit plans (in rather limited detail).
The human currency market: DD stands, pound goes down. DD sits, pounds goes up. pic.twitter.com/fRPTb4l56k
7.41pm BST
My colleague John Harris can see the big picture:
This is ultimately not a laugh. Early proof of everyday economic chaos underlying ref result/Brexit. Well done all https://t.co/Vblezgu7zC
(Although the fact that Marmite is involved is obv hilarious)
7.36pm BST
The clash between Tesco and Unilever over the weak pound is causing a stir on social media:
Nooooo! Marmite and Ben & Jerry's pulled from Tesco over Brexit price dispute: https://t.co/Yh57E17eGD pic.twitter.com/izuDrbDRcB
Brexit smashes up with real life - Tesco + Unilever at war over Marmite + Pot Noodles because of plunge in sterling, headline writers' dream
Imagine if Cameron had tried that one in the referendum campaign. "If you vote Leave there will be NO MORE MARMITE OR BEN & JERRY'S"
Ironic that this most Marmite of issues (Brexit) now sees Marmite as an early victim.
You could literally wait all your life for the headline 'Brexit threat to Pot Noodle supplies' but https://t.co/CbLaIckyYM
not the first time I've heard people whingeing about spreads in FX#marmite https://t.co/sGixv6dSXy
7.09pm BST
The pound is clinging onto today’s modest gains, after the minutes of the last meeting of America’s central bank policymakers was released.
The minutes show that “several members” of the Federal Reserve favour raising US interest rates “relatively soon”, if the economy keeps performing as expected.
FOMC members: We should raise rates or we should wait.
↑
Reminds me of the weather man in autumn: It may rain or it may not.
6.43pm BST
As if Britain didn’t have enough to worry about, the slump in the pound means you may not be able to pick up a jar of Marmite from Tesco.
A row had broken out between the supermarket chain and consumer goods giant Unilever, over who should shoulder the impact of the weaker sterling, which has pushed up the cost of raw materials.
Tesco is running short of stocks of a range of household brands from Marmite to Comfort fabric conditioner after a row with its major supplier Unilever.
It is understood that Unilever has halted deliveries to Tesco after a dispute over price. The food, toiletries and household goods supplier has been attempting to raise prices across a wide range of goods by about 10%, blaming the falling value of the pound against the euro and the dollar.
In different areas of the country a number of Unilever brands have sold out. They include Persil, Surf, Dove, Comfort, Ben & Jerry’s ice cream, Elmlea, Colman’s, Helmann’s, Marmite, Knorr, Bertolli, Flora, Comfort and Pot Noodle.
Related: Tesco running low on key Unilever brands because of price row
Unilever told Tesco it wanted to up its prices by 10% due to weak £. Tesco refused and so, as of today, Unilever is not supplying them.
According to the supermarket's website, Tesco is out of Ben and Jerry's ice cream, Marmite, Hellmann's Mayonnaise and Colman's Mustard.
6.17pm BST
Wall Street bank Goldman Sachs has created a stir, by predicting that sterling could shed another 7%.
Goldman Sachs sees further downside risk for sterling. Could fall another 7% from current level, which would take it down to $1.14.
Goldman: in the last century there have been 8 (!!!) periods in which sterling has dropped by more than 25% in less than 12 months. pic.twitter.com/3jX7wLau3i
5.48pm BST
A reminder, the UK parliament debate on Brexit is being covered in our politics live blog here:
Related: May refuses vote on article 50 after conceding debate - Politics live
5.17pm BST
Ahead of the minutes from the latest US Federal Reserve meeting, and as the pound recovers slightly but remains close to its record lows, European markets have ended the day lower. Chris Beauchamp, chief market analyst at IG, said:
A small recovery in US markets at the beginning of the session is already beginning to fizzle out, while the US dollar is doing well ahead of Fed minutes, on the expectation that the account of the most recent meeting will show a committee still keen to raise rates. As has been the case for the week thus far, attention has focused mainly on sterling, thanks to the absence of heavy-hitting UK data. The pound continues to lose ground, testing the water below $1.22 again, although indications that the UK government may have to navigate Parliament before activating Article 50 have helped to stem downside in cable today.
In a quiet session the main event, Fed minutes, is still to come, and could yet reverse the weakness in equities and the relatively sparky performance of the dollar. Of particular note this afternoon is a possible breakout in dollar/yen which is finally trying to move meaningfully above Y104. 2016 has been, by and large, a year of yen strength, but it will be music to Shinzo Abe’s ears if the Japanese currency finally begins to fall. After all, if the UK can do it, why not Japan?
4.33pm BST
Here’s our story on the debate in parliament, with MPs warning the government that the current uncertainty is hitting businesses and markets. Rowena Mason reports:
A string of Tory and Labour MPs have warned David Davis, the Brexit secretary, that businesses and financial markets are being spooked by his lack of a plan for leaving the EU.
Claire Perry, a Conservative former minister, said on Wednesday she was extremely concerned about the state of the pound and accused him of putting “narrow ideology” ahead of the national interest, while Ken Clarke, the former chancellor, said no foreign companies would invest until there was more clarity about the UK’s future relationship with the outside world.
Related: Brexit: MPs warn David Davis that lack of clarity is spooking markets
4.30pm BST
The pound is back below $1.22 as the lift from the government’s promise of a Brexit debate fades, and the US currency strengthens on the growing expectation of a rate rise from the Federal Reserve before the end of the year.
Sterling is currently at $1.2193, up 0.6% on the day having earlier climbed as high as $1.2325. Against the euro the pound is up 1% at €1.1075.
4.00pm BST
A Treasury official has sought to ease fears about the City’s future in a post-Brexit world. Reuters reports:
Britain’s financial services sector will be a “high priority” for the government when it negotiates the terms of Britain’s new relationship with the European Union, the most senior official in the country’s finance ministry said.
“The UK economy and UK exports are quite services-heavy, and financial services are an important part of that. So I think we will be very keen indeed to make sure the final agreement gives the proper place to financial services within that,” Tom Scholar, permanent secretary at the Treasury said.
“So it will have a high priority in our discussions,” he said in a hearing before the lower house of parliament’s Treasury Committee on Wednesday.
Top bankers warned on Tuesday they could start moving staff abroad as early as next year if there is no clarity on Britain’s access to the European single market once it leaves the EU.
3.29pm BST
On the pound’s moves today, Connor Campbell at Spreadex said:
Though not as perky as at lunch time the pound has nevertheless held onto its earlier gains this afternoon.
In the face of US investors keen to buy the dollar as Donald Trump’s presidential campaign disintegrates, and a speech from Brexit minister David Davis that erred on the ‘hard’ side of things, the pound managed to rise 0.7% against the greenback and 0.8% against the euro this Wednesday. A slight comedown from its morning highs, then, but nevertheless the kind of respite sterling was crying out for by the end of yesterday’s trading.
3.27pm BST
Of course Brexit is not the only thing influencing currencies at the moment, the dollar in particular. The greenback is strengthening on the prospect of a possible US interest rate rise this year, with Hillary Clinton’s lead in the US presidential race deemed to be something which could allow the Fed to move.
The minutes from the last Federal Reserve meeting, which left rates unchanged, will therefore be scrutinised for clues as to what the Fed members are thinking. Michael Hewson, chief market analyst at CMC Markets UK, said:
The US dollar has continued to be the primary beneficiary of this uncertainty hitting its highest levels since March, as markets look to the potential for a rate rise in December ahead of the publication later today of the latest FOMC minutes, where we will get further insight into the level of the dissent about last month’s decision to hold rates steady.
We know the doves were able to win the argument this time, however we don’t know how wide the divisions were and whether any other members felt compelled to go with the dissenters, but harboured enough doubts to hold back and wait a little bit longer. If the minutes point to any waverers on the dove front then the US dollar could well take another leg higher.
2.59pm BST
Some choice words from ex-chancellor Kenneth Clarke:
Clarke: "the reaction in the markets is only too obvious. Pound has devalued to an extent that would have been regarded a crisis in my time"
2.51pm BST
Time for some charts.
This one shows how the pound has suffered a volatile few days – starting with Friday’s flash crash, and continuing with last night’s rout.
According to a trade-weighted index measuring sterling against a basket of its trading peers, the pound has now slumped to its lowest on record, stretching beyond the introduction of free-floating exchange rates in the 1970s, back to the mid-1800s according to data compiled by the Bank of England.
The pound’s effective exchange rate, which is weighted to reflect the UK’s trade flows, hit a low of 73.38 on Tuesday – weaker than the depths hit during the financial crisis, Britain’s ejection from the European Rate Mechanism in 1992, and its decision to leave the Gold Standard in the 1930s.
2.37pm BST
Brexit Minister David Davis talks and pound falls, again. Sterling now below $1.22 v USD
2.33pm BST
The pound lurched back below $1.22 as the government outlined its Brexit strategy -- although David Davis didn’t shed much new light on the situation.
Secretary of state Davis promised to get the best possible terms for the UK as it leaves the EU, but refused to say whether, for example, it had ruled out retaining membership of the single market.
Anna Soubry asks whether UK has ruled out single market membership, yes or no? Davis says it's an eg of problem w/ language in the EU debate
“We have been pretty clear on the overarching aims. Not the detailed aims. We’re not even at the point that that’s possible.
UK 10Y Gilts are selling off in conjunction with $GBPUSD turning lower...'Hard Brexit' fears are returning after overnight respite.
Seems that UK PM May's decision for parliamentary inclusion is for show only; 'Hard Brexit' still the most likely outcome.
2.17pm BST
British government debt is also dropping in value, hitting its weakest level since the end of Jube.
The yield (or interest rate) on 10-year gilts has risen to 1.06%, from 0.98% last night.
1.58pm BST
Another day, another bout of sterling volatility....
STERLING FALLS BACK BELOW $1.2200 AS U.S. INVESTORS SELL POUND, NOW UP JUST 0.6 PCT ON DAY
1.54pm BST
(•_•)
<) )╯Here
/ \
\(•_•)
( (> we go
/ \
(•_•)
<) )> again
/ \
£/$1.22
1.52pm BST
Eek, the pound is now shedding some of its earlier surge. It’s now up just one cent, at $1.22, having hit $1.23 earlier.
Investors may be watching parliament, where David Davis, secretary of state for exiting the EU, has insisted no party will get a veto on Brexit.
1.32pm BST
A fascinating debate is underway in the House of Commons now, as MPs discuss how they will scrutinise Brexit.
Keir Starmer, Labour’s shadow secretary for exiting the EU, is arguing that parliament must get a vote on the terms of leaving the European Union.
Tory Dominic Grieve savages @theresa_may for not putting major treaty change - Brexit terms - to Commons for vote
Chris Bryant talking the Ponsonby rule, Dominic Grieve talking about the convention of an "affirmative vote" in PArliament for a treaty...
In English - this is the sound of the @HouseofCommons taking back control. Incrementally. https://t.co/3aE2CC2dmt
Related: May refuses vote on article 50 after conceding debate - Politics live
1.27pm BST
We know that the pound hit a record low last night, but which way might it move next?
Kallum Pickering, senior UK economist at German bank Berenberg, suggests sterling could suffer fresh losses if Brexit negotiations get off on the wrong foot.
The latest leg down for sterling reflects the shift in market expectations towards a hard Brexit following recent comments from Prime Minister May and her cabinet.
Has sterling found a bottom? That depends on how Brexit negotiations play out. If the UK and EU clash noisily in the forthcoming negotiations or if the UK goes for a ’hard Brexit’, a risk we cannot rule out, sterling is likely to continue to sink further.
If the UK and the EU agree to part ways in an amicable manner, and if the UK secures good terms for post-Brexit trade, sterling is likely to rebound along with the UK economic outlook
1.10pm BST
Confidence among Britain’s food industry has been rattled since the Brexit vote, a new survey has found.
Although the weak pound should help exports (making Mr Kipling cakes, Marmite and Scottish shortbread more affordable abroad), manufacturers are worried that they could face new tariffs once Britain leaves the EU.
Related: Food industry shaken by hard Brexit prospects, survey reveals
12.45pm BST
The EU referendum vote has forced international investors to get up to speed on the intricacies of the UK parliament, the EU single market, the untested article 50, and scrutinise every Brexit-related headline out of London and Brussels.
The Financial Times columnist Janan Ganesh suggests markets should calm down....
Markets foolish to parse govt statements for clues. There's no plan. Each panic-inducing remark gets toned down. May as well ask your cat.
12.43pm BST
An important point:
May refuses to promise MPs a vote on Brexit before article 50 is invoked - Only promising debate - V big differnc - https://t.co/T9HYpxKWrf
12.22pm BST
The pound has kicked on a little, back towards $1.23, after prime minister Theresa May told MPs she will aim for “maximum access” to the EU single market.
May says she is determined to achieve the “right deal for the UK.....operating in and trading with” the European market.
Related: Labour claims 'real victory' after May offers Brexit debate concession - Politics live
11.55am BST
This chart confirms that the pound plunged to a record low last night:
Trade-weighted sterling hit a record low on Tuesday pic.twitter.com/kiMSLJbCI2
11.53am BST
Newsflash: Yesterday’s brutal selloff drove the pound down to its lowest ever level against a basket of other currencies.
New data from the Bank of England shows that trade-weighted sterling crashed through its previous seven-year low during last night’s trading, to depths not seen before.
The Bank of England’s broad effective exchange rate index for the pound shows that the currency is now worth less than it was at the height of the 2008-09 financial crisis, or in the aftermath of Black Wednesday, when sterling left the European Exchange Rate Mechanism.
Given the pound has declined from its once strong position throughout the last century, the current level means it has never traded lower against its trading partners.
Her majesty's bitcoin, the north Atlantic peso, now at its lowest level ever (like, ever ever) https://t.co/37rK7xClM0 pic.twitter.com/Pub3CCCBoI
11.45am BST
While I was watching Jon Cunliffe, Lloyds Banking Group announced it is cutting more than 1,300 jobs.
Lloyds Banking Group is cutting 1,340 jobs according to unions
11.44am BST
Sir Jon Cunliffe’s session at the House of Lords has now ended.
Here are the key points from the Bank of England deputy governor:
11.30am BST
Q: What are the prospects of the UK continuing to have influence over the regulation of financial services in the EU, and globally, after Brexit?
Sir Jon Cunliffe says the UK won’t have influence from inside on the making of EU regulation, once it has left.
We will necessarily lose influence, if you’re not an EU member you can’t be inside the machinery making EU law.
11.18am BST
Q: Would the Bank of England ever ‘mark the card’ of ministers over Brexit?
Cunliffe says the Bank doesn’t have that power, but it has a responsibility to monitor the UK financial system and make its views known.
11.15am BST
Onto the Brexit buzzword - uncertainty.
Q: How will the Bank respond if politicians make pronouncements in the run-up to Brexit?
No matter how it’s arranged, we just need a smooth and orderly progression from where we are to where we’re going, wherever that is, so firms can plan and execute those plans.
11.08am BST
Q: Is there a serious risk that the euro clearing market could move out of London?
You avoid what happened in the financial crisis, where as the prices of assets move quickly, counter-parties make margin calls on other counter-parties, and the situation deteriorates quickly.
I can understand the politics around this, but we’re taking technically about multi-currency infrastructure.
If we’re talking about going to a world where you have to clear in the jurisdiction of issue, then the costs are going to go up in a pretty big way.
10.50am BST
City jobs are more likely to move to New York than to Europe, if Britain loses access to the single market, Sir Jon Cunliffe argues.
I can’t see London’s financial ecosystem being replicated elsewhere in the foreseeable future, in one place in the European Union.
It takes an awful lot of time, human capital, it’s based around the interaction of financial services and other services.
The idea that this ecosystem can be transplanted to Europe in the foreseeable future is highly unlikely.
10.39am BST
Cunliffe warns that both sides could lose out if Britain’s financial services sector loses the right to offer services across the EU, as it can today.
He says:
If barriers are put up between London and Europe, forcing banks to hold more capital...then that will put up the cost of finance, and financial services , on both sides of the Channel.
10.35am BST
Q: Is there scope for an early deal that would allow the City to keep these ‘financial passports’, or some similar service?
Cunliffe says there are currently 350,000 passports in operation (I think he means in the City) and most are outbound from the UK (for example, a London firm could offer insurance across the EU).
10.30am BST
The committee ask Cunliffe for his views on the terms of Brexit, and whether a ‘bespoke’ deal would help the financial services industry.
Cunliffe says that the single market currently allows UK financial firms to offer services ‘relatively frictionlessly’ across the EU, by using the passport.
If we’re not in the single market, that means the current way that that relatively frictionless interactions take place won’t continue.
10.23am BST
Q: What’s the impact of the plunge in sterling?
Cunliffe: There’s no numerical relationship between the fall in a currency and a rise in inflation.
Markets find political uncertainty very difficult....And the UK’s exit from the European Union will be the product of political processes here and in other countries.
10.18am BST
Sir Jon Cunliffe says there is “great uncertainty” over the extent to which companies will leave the City, because of Britain’s exit from the EU.
Recent economic data has been more encouraging than feared before the referendum. But uncertainty over the UK’s future trade links will weigh on business investment, he cautions.
10.18am BST
Cunliffe says he’s not a great fan of terms like ‘hard’ or ‘soft’ Brexit - you need to dig down into the details to see exactly what it means for, say, financial service firms in London (who can offer services across the EU today).
And it’s important that Brexit doesn’t distract company management from wider financial stability issues.
10.12am BST
Sir Jon Cunliffe, deputy governor of the Bank of England, is testifying to the House of Lords EU Financial Affairs Sub-Committee, about Brexit’s impact to financial services.
I wouldn’t rule out.... as more news comes in, that there is potentially stress in markets.
10.04am BST
Sterling just had a little wobble, after the newswires flashed up that Theresa May’s spokeswoman has said MPs won’t get a vote on whether to trigger article 50.
That’s not a surprise, of course. But it shows how edgy the markets are right now.
9.47am BST
City traders are hoping that today’s Opposition Day debate about Brexit scrutiny will provide some colour about the government’s strategy.
Peter O’Flanagan, head of trading at Clear Treasury, says the markets are currently pricing in the “worst case scenario” for Brexit.
The pound is still the worst performing currency across the globe this year and liquidity in the pound remains weak, but any talk around Brexit that might be deemed slightly positive provides scope for a relief rally.
9.32am BST
Here’s our latest news story, explaining how Theresa May has agreed to allow MPs “full and transparent” scrutiny of the process to exit the European Union.
Related: Theresa May 'U-turn' over pre-article 50 Brexit debate in parliament
May had been facing her first government defeat over the motion on Wednesday, as a number of Conservatives indicated they were prepared to vote with Labour to demand greater public debate over the Brexit negotiating strategy.
The concession does not go as far as specifying that MPs should get a formal vote on article 50 or any Brexit deal and slightly amends Labour’s version to say the government’s negotiating position must not be undermined.
9.29am BST
Morgan Stanley’s head of currency strategy, Hans Redeker, welcomes the news that Theresa May will allow a debate on Brexit strategy.
He says:
After weeks of tough rhetoric pushing sterling into a trading environment closer to an emerging market currency, the government may aim to stabilise markets, with its rhetoric and suggestions now possibly shifting in tone,”
There is a fine line to walk as May’s Conservative Party wants a clean split from Europe.
In addition, giving in too much, even before Article 50 negotiations have started,shifts the negotiation advantage towards the EU. Hence, the pound’s rebound should be limited and followed by a decline.”
9.17am BST
Despite jumping by almost two cents this morning, the pound is still worth less than first thing yesterday morning.
That’s because sterling was duffed up in the foreign exchange markets last night, plummeting through the $1.21 mark.
pic.twitter.com/hFA3eJFbkA
9.07am BST
Despite today’s rally, the pound is still around 5% weaker than before the Conservative Party conference, where Theresa May promised to trigger article 50 within six months.
The penny drops! #Fundamentals alone could push #sterling lower. Further #isolationist rhetoric can only hasten that https://t.co/x1USYuZ36B pic.twitter.com/QsQrf0e5rU
Mrs May said last week that the fundamentals in the British economy were strong and that the economy had grown more strongly than many had expected after the June 23 Brexit vote. “We see sterling moving in different ways at different times,” she said.
But some Tory MPs warn that “imported” inflation will erode living standards and undermine Mrs May’s attempts to help the “ordinary working-class” Britons who saw the Brexit vote as a cry for help.
8.59am BST
This chart, from Capital Economics, suggests the pound has been ‘oversold’ recently, compared to what you’d expect based on likely interest rate moves.
#GBP/USD recently fallen below level implied by UK/US interest rate expectations. Rebound ahead if hard #Brexit worries ease? pic.twitter.com/GRgesArXPO
8.45am BST
Today’s sterling rally may not last, according to Neil Wilson, analyst at City firm ETX Capital.
He reckons the pound will suffer more volatility, as the political drama around Brexit continues to play out.
Theresa May’s decision last night to allow the House of Commons a debate on the government’s Brexit plans before triggering Article 50 seems to have allayed some of the concerns about a ‘hard Brexit’ that had dominated since her speech at the Conservative Party conference. Bank of England policymakers had also appeared to talk the currency lower.
But if traders think the mood is turning bullish for the pound, they’re mistaken. The bears are still very much in control and this relief rally looks like a dead cat bounce
8.39am BST
London’s stock market has dipped in early trading, sending the FTSE 100 index down by 21 points (or -0.3%) to 7049.
That’s partly due to this morning’s sterling rally. A stronger pound isn’t great news for internationally-focused companies, who earn most of their earnings in foreign currencies.
I did a 'splainer pic.twitter.com/qsm8hPtu7X
8.28am BST
The pound is also enjoying a good morning against the euro, up over 1% at €1.108.
So respite for sterling in early trading , Euro v £ down from 91.4 p to 90 p
8.21am BST
Asa Bennett of the Daily Telegraph has a good explanation of how MPs are being allowed more scrutiny of the government’s Brexit plans.
This is from his morning email:
The Government may not want to give a “running commentary” on its Brexit strategy, but MPs are very keen for Parliament to have its say. Some Tory MPs are among them, with Stephen Phillips warning ministers that they would be acting like a “tyranny” to negotiate Brexit without consulting Parliament. “That really is a democratic deficit,” writes Philip Johnston in today’s paper. “Actually, let’s not mince words. That’s dictatorship.” Brexit means Brexit, James Kirkup adds, “but Parliament is Parliament”.
Labour is hoping to exploit this concern by pushing an Opposition Day motion today calling for Parliament to be able to scrutinise the government’s Brexit plan before Article 50 is triggered, and offering 170 questions for ministers to answer. It looks like the Opposition has scored a direct hit, as the Government moved last night to table a surprise amendment offering MPs extra Parliamentary scrutiny of the Brexit process in order to prevent Tory MPs from rebelling, which Labour has trumpeted as “one hell of a climbdown”.
Today's briefing - "Parliament means Parliament" is out now, and you can read it here: https://t.co/eb1U69CxFw pic.twitter.com/8KBSR67oNs
The UK government indicated that Parliament may have a say on its negotiation stance ahead of the exit discussions with the EU.
The change in the nuance of the government’s position has halted the seemingly inexorable decline of sterling. Markets are once again the idle playthings of politicians’ whims.
8.09am BST
The pound is rallying hard this morning, following signs that the government will allow MPs more scrutiny of its plans to leave the European Union.
Sterling has gained more than 1.5 cents this morning, popping back over the $1.23 mark as traders give the pound new vote of confidence.
Govt accepts Labours demand for proper scrutiny of Brexit plans. Welcome victory ahead of Commons debate tomorrow: democratic grip essential https://t.co/XwM4g4x6wx
This real victory for Parliament will help ensure there is proper democratic grip of Brexit process - @Keir_Starmer https://t.co/IjIsOPqY2I
What a difference a day makes, the pound is the top performer in the G10 on Wednesday, rising by more than 1.3% versus the euro, and 1% versus the US dollar. The trigger was a surprise announcement from Prime Minister Theresa May that she will allow Parliament to vote on her plan to take the EU out of the European Union.
This will allow the UK’s elected representatives to scrutinize Theresa May’s plans for Brexit. It has triggered a relief rally in the pound on Wednesday, as it could potentially limit the prospect of a “hard Brexit” taking the UK out of the single market, which has been a major concern for some investors and the business community in recent days.
Pop in the pound...on May's agreement Parliament should be allowed vote on Brexit plan (tho' can't block Brexit or "undermine" negotiation) pic.twitter.com/VNKfhx0AaD
7.45am BST
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
We’ll be watching the pound closely again, after last night’s heavy losses sent sterling down below the $1.21 mark last night.
Related: Pound completes worst four-day performance since Brexit vote
Related: Brexit adviser: leaving EU customs union will cost UK £25bn a year
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