Sterling was again undermined by on-going political fears.

Headline November US payrolls increase of 155,000 was below consensus forecasts of 200,000, although year-on-year average hourly earnings growth held at 3.1%.

US bond yields declined further on further growth doubts and a downward adjustment to Fed expectations on slightly more cautious rhetoric and the dollar lost ground.

Sterling was again undermined by on-going political fears.

Oil prices rallied after the OPEC deal to cut output, but weaker risk conditions and growth concerns capped gains.

Another sharp decline in US equity markets dragged global markets lower and commodity currencies were also undermined by weak risk appetite, although very strong employment data protected the Canadian dollar.

US dollar losses underpinned precious metals.

The UK housing data was below consensus forecasts with a 1.4% monthly decline in the Halifax index holding the annual increase to 0.3%. Inflation expectations for the year ahead strengthened to 3.2% from 3.0% previously.

During Friday, government sources continued to indicate that the parliamentary Brexit vote would go ahead on Tuesday despite strong pressure for the vote to be delayed given no evidence of a shift in sentiment within the House of Commons.

Sterling was also hampered by weak global risk appetite and GBP/EUR fell to the 1.1150 area while there was some GBP/USD support on approach to the 1.2700 area given wider US losses.

Sterling remained on the defensive during Monday as political uncertainty dominated with fresh speculation that Prime Minister May would face a leadership challenge if the government loses Tuesday’s scheduled vote as tensions remained intense. GBP/USD did edge higher, but there was a decline to 11-week lows against the Euro as GBP/EUR below 1.1150.

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