Weekend News Flow In Focus

News flow surrounding BoE/coronavirus/Brexit matters stole the limelight early doors and GBP/USD inched higher, despite little in the way of outright positive surprises on the wires. Cable has gradually trimmed gains and now trades +11 pips at $1.2757.

• Sterling seems unfazed by a weekend piece in the Telegraph, which cited BoE's Tenreyro as pointing to encouraging evidence on negative interest rates.
• Domestically, PM Johnson is facing increasing political headwinds over the government's coronavirus policies. The Times reported that UK ministers are preparing an emergency lockdown in much of Northern Britain and potentially London, even as a group of Conservative MPs wants to increase parliamentary scrutiny over coronavirus restrictions.
• On the Brexit front, the latest round of negotiations starts on Tuesday, with the most recent source reports painting a mixed picture re: mood music.
• Bulls look for a break above Sep 22 high of $1.2867, which would clear the way to the 20-/50-EMAs at $1.2901/20. Bears need a fall through Sep 23 low of $1.2676 before attempting a move at Jul 22 low of $1.2644.
• UK data highlights this week include final Q2 GDP (Wednesday) & final Markit M'fing PMI (Thursday). BoE Gov Bailey will speak later today, while Chief Economist Haldane will appear on Wednesday & Thursday.