[vc_row][vc_column][vc_column_text]Worries over Brexit continued to weigh on the pound, with markets unsettled by Theresa May’s decision to postpone the ‘meaningful’ parliamentary vote once again.

The euro struggled to find support, meanwhile, as economic confidence in both Germany and the wider Eurozone continued to weaken.

Signs of increasing reticence among Federal Reserve policymakers put pressure on the US dollar, with the odds of a 2019 interest rate hike fading.

As trade tensions between the US and China showed signs of easing, however, this gave the risk-sensitive Australian and New Zealand dollars a solid boost across the board.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]As clarity over the future of the UK’s relationship with the EU remained distinctly lacking and retail sales stagnated the mood towards the pound naturally deteriorated.

With Parliament’s ‘meaningful’ vote on Theresa May’s Brexit deal postponed to little more than two weeks before the March deadline GBP exchange rates came under renewed pressure. In the absence of any tangible progress towards an agreeable deal the appeal of the pound has diminished, with markets still wary of the possibility of a no-deal Brexit.

Although January’s public finances bettered expectations this was not enough to keep the pound on a positive footing for long. If rumours of a potential extension to Article50 continue to gain traction, however, demand for the pound could pick up sharply.

Focus will also fall on February’s UK manufacturing PMI this week, with forecasts pointing towards the index easing. Unless the manufacturing sector shows greater signs of resilience GBP exchange rates look set to remain under pressure in the near future.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]

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