[vc_row][vc_column][vc_column_text]Signs of resilience from the UK services PMI failed to shore up the pound last week, with markets still concerned by the lack of clarity surrounding the UK’s future relationship with the EU.

Sharp deteriorations in German and French industrial production put pressure on the euro, meanwhile, as confidence in the outlook of the Eurozone economy weakened.

January’s change in non-farm payrolls figure encouraged the US dollar to hold onto a stronger footing against its rivals, even though the corresponding unemployment rate saw an uptick.

Lingering anxiety over the unfolding economic impact of the Wuhan coronavirus outbreak kept a dampener on the risk-sensitive Australian and New Zealand dollars.

EU officials showed signs of taking a harder line on post-Brexit trade

The finalised UK services PMI for January offered the pound a little encouragement at the start of last week by suggesting that the economy started 2020 on a stronger footing.

Even so, GBP exchange rates remained largely biased to the downside as EU officials showed signs of taking a harder line on post-Brexit trade.

With a significant degree of uncertainty still hanging over the future of the UK economy demand for the pound proved generally muted.

A solid Halifax house price index helped to put a floor under GBP exchange rates ahead of the weekend, however, as the improvement fuelled hopes of a greater recovery in consumer confidence.

The mood towards the pound could sour once again on Tuesday, though, if the fourth quarter UK gross domestic product weakens as anticipated.

Evidence that economic growth stalled in the final three months of 2019 would give investors fresh incentive to sell out of the pound.

Unless the growth data surprises to the upside GBP exchange rates may struggle to hold onto any positive ground.[/vc_column_text][/vc_column][/vc_row]