Sterling slips ahead of Labour conference Brexit vote

Daily Currency Update

GBP - British PoundAfter pushing as high as 1.2580 last week, GBP/USD is back to around 1.2460 at the moment as Brexit sentiment turns dovish once more. Last Thursday saw cable rally on encouraging words from EU Commissioner, Jean-Claude Juncker about the possibility of a Brexit deal being done however after hitting its highest level since mid-July the gains were undone as Irish Foreign Affairs Minister, Simon Coveney downplayed the chances saying there was still a "wide gap" between the two sides. GBP/EUR trades around 1.1335.This week is another crucial week for the pound with the Labour Party conference taking place in Brighton and the UK Supreme Court due to deliver its verdict on the legality on Boris Johnsons decision to prorogue Parliament. Labour party members are due to vote on its Brexit policy going forward later, with delegates due to choose between explicitly backing remain in a future election or remaining neutral until they have agreed a deal which would then be put to a public vote via another referendum. Many members of leader, Jeremy Corbyns own shadow cabinet are pushing for Remain to the be the parties default position however the subject has divided the party deeply, much like within the Conservative Party. UK Prime Minister, Boris Johnson is travelling to New York today as the annual UN General Assembly kicks off later in New York. We can expect tough talk against Iran's purported backing of the recent drone attacks by Yemeni rebels on oil refineries in Saudi Arabia. The attacks saw the biggest jump in crude prices since markets started pricing contracts for one month delivery with Brent jumping nearly $10pb intraday on 16th September.