A snag in the Brexit plans sent the Pound Sterling lower versus the greenback though most FX traders seem to be optimistic that this is no more than a glitch and that a hard crash can be avoided. British Parliamentarians delayed a vote that then would compel the Prime Minister to request another postponement. Boris Johnson has said that he continues to oppose any delay in the Brexit which is scheduled for October 31st. Most analysts believe that the European Union leadership is anxious to put these discussions to bed soon and thus are likely to back any reasonable proposal that is put forth by British lawmakers.
The GBP/USD was trading down 0.4595% at $1.2912 as of 10:38 am in Tokyo. The pair is moving off the session trough of $1.28701 while the high was recorded at $1.29847. The EUR/GBP was higher at 0.864 Pence, up 0.232%, while the GBP/JPY was at 140.062 Japanese Yen, down 0.3755%.
Eurozone Data in Focus
Looking at the Eurozone, later today the German Statistics Bureau will be releasing its producer inflation data for the month of September. Analysts are predicting that the data on a month-over-month basis is likely to show some improvement at -0.1% compared to -0.5% in the previous reading. Later in the week, markets will focus on the Eurozone's preliminary PMI data, with analysts currently predicting some improvement in France's and Germany's surveys for the manufacturing and services sectors, as well as t he composite, though the forecasts are all still below the 50.0 threshold indicating contraction of the sector.