The pound is holding firmer in the European morning
Cable has moved up from around 1.2115 to a session high of 1.2249 as the pound gains some ground on the session. The only thing I see that is potentially feeding into the upside move is the comments by Labour lawmaker Keir Starmer here.
The stance suggests that Labour may instead be looking towards passing a law to stop a no-deal outcome instead of pursuing the course of a no-confidence motion.
The latter seems to be lacking support from opposition parties so if Labour is easing up on that stance, perhaps it gives parliament a better shot at stopping Boris Johnson.
Technically, cable bounced off support near the 100-hour MA (red line) so buyers continue to maintain near-term control. However, unless price manages to climb above 1.2300 it’s hard to see how the move higher amounts to anything significant for the time being.
Expect Brexit focus to heat up in the week ahead as UK lawmakers will return from their summer recess on 3 September.