GBP/USD downside update...

Sterling stands as the G10 laggard in early trade in light of a slew of Brexit developments over the weekend which added to the pessimism on an agreement reached with the EU ahead of the October deadline.

First, PM Johnson brough forward the touted deadline to October 15th from the prior October 31st in order for a deal to be effective by year-end (a change EU sources are brushing off), but more notably the PM is said to be planning a new legislation to override the withdrawal agreement signed last October, in a move that threatens upcoming negotiations and unsurprisingly received backlash from Brussels.

Meanwhile, Brexit negotiator Frost also reaffirmed the government’s stance that the UK does not fear a no-deal Brexit. Furthermore, on the pandemic-front, UK reported 2,988 cases on Sunday vs. 1,813 infections on Saturday, the largest increase since 23rd May and a development that sparked concern in the Health Ministry.

Cable resides around the low 1.3200 levels having had tested the figure to the downside ahead of its 21 DMA at 1.3184 and Friday's low at 1.3177.

Meanwhile, aside from the commencement of the latest Brexit negotiation round, BoE’s Haskel is on the docket for a speech at the European Commission’s programme on 'Moving the Frontier of Macroeconomic Modelling of Research & Innovation'.

Hope everyone has a great week ahead! - Stay tuned for more ideas!