FX round-up: Pound edges up opposition holds off on no-confidence vote

(Sharecast News) - Sterling edged higher at the start of the week after Labour leader, Jeremy Corbyn, after meeting with opposition leaders, said that he would not pursue a no-confidence vote until a no-deal Brexit was off the table.
Further boosting the pound, earlier the government said that it would remit to Brussels more detailed proposals for the UK's withdrawal later in the week and a Brexit hardliner, Mark Francois, reportedly indicated that he would consider any deal with the European Union - even if it included an Irish border backstop.

As of 1647 BST, cable was higher by 0.07% to 1.22982 and against the euro it was advancing by 0.42% to 1.1280.

In the background meanwhile, data released by the Office for National Statistics on Monday showed that households' broad money holdings, or M4, grew at a 3.6% year-on-year pace in August.

That, said Samuel Tombs at Pantheon Macroeconomics, meant that "households have the healthy cashflow needed to maintain steady growth in their spending over the coming months."

And in remarks to Sky, the Chancellor, Sajid Javid, vowed higher infrastructure spending.

Also helping risk appetite, White House trade advisor, Peter Navarro, labeled reports from the previous Friday that the US might act to limit Chinese companies ability to list on US stock exchanges as "fake news".

"This story was just so full of inaccuracies. And in terms of the truth of the matter, what the Treasury said, I think, was accurate," Navarro told CNBC.

Over the weekend, a US Treasury spokesman had said that: "The administration is not contemplating blocking Chinese companies from listing shares on U.S. stock exchanges at this time."

Those remarks from Navarro and the US Trade Secretary saw US dollar/yen add 0.14% to 1.23058.

Euro/dollar meanwhile was down 0.32% to 1.09054 after Germany's Federal Office of Statistics reported a dip in the year-on-year rate of increase in German harmonised consumer prices from a 1.0% clip in August to 0.9% for September.