POUND LIVE: Pound steady as Theresa May promises stronger, fairer Britain amid Brexit
THE pound opened flat on Monday as Theresa May geared up to deliver a big speech almost a year since she took office.
Sterling lifted slightly against the euro to 1.1302 and the US dollar to 1.2889, as the Prime Minister promised a "fairer and stronger Britain" amid Brexit talks.
Britain's exchange rate now appears to be waiting for updates from the Bank of England and economy updates, which could signal the outlook for UK interest rates.
Higher interest rates help strengthen a currency so talks by two members of the rate-setting Monetary Policy Committee, Andy Haldane and Ben Broadbent, tomorrow will be closely watched by markets.
Mr Haldane recently hinted he could vote for an interest rate rise at the Bank's next meeting in August.
Kathleen Brooks, research director at City Index Direct said: "It will be interesting to see if Haldane continues to keep up the hawkish tilt in his speeches.
"If Broadbent joins him then the market may start to wonder if the split could tilt to 5-4 for no hike at the next meeting, lowering the bar further for a rate hike from the BOE just at the time that wages look like they are stalling and the economy is taking a turn for the worst.
"This could hurt UK stocks, particularly the FTSE 250, which has fallen more than three per cent since peaking in early June.
"Expect volatility in the pound this week as we also wait for critical employment data due out on Wednesday."Theresa May: Britain will SIEZE trade deals with countries
More to follow...