Investing.com - The pound was mixed on Tuesday morning ahead of a speech from the Brexit secretary David Davis, where he is expected to discuss close cooperation between the UK and the EU following the UK’s departure.
The pound fell below the 1.40 level amid Brexit concerns and in lieu of macro-economic data. At 09:15 GMT GBP/USD was 1.3960, down 0.28% on the previous session close.
David Davis’ Brexit speech, one of a series of six from Cabinet ministers, will take place in Vienna at 10:00 GMT. The speeches have been titled the ‘Road to Brexit’ and aim to clarify the government position on the UK’s future relationship with the EU following Brexit.
Davis is expected to address critics of Brexit, who fear leaving the single market and customs union will be a ‘race to the bottom’. It is expected he will rule out a ‘Mad Max’ post-Brexit Britain: ‘With Britain plunged into a Mad Max-style world borrowed from dystopian fiction. These fears about a race to the bottom are based on nothing, not history, not intention, nor interest.’
He is expected to issue some reassurances to Brexit critics on both sides of the channel by stating that the UK will not try to undercut the EU with fewer regulations.
Boris Johnson made the first of the Brexit speeches on Wednesday from London, while Prime Minister Theresa May spoke from Munich on Saturday.
Although down against the dollar, the pound remained mixed against other currency majors.
The pound moved up against the euro, EUR/GBP dipped 0.10% to 0.8852. The single currency was lower against the dollar with EUR/USD down 0.40% to 1.2357.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.47% to 89.50.
The pound edged higher on safe haven currencies, GBP/JPY was 149.62, up 0.27%, while GBP/CHF was up 0.20% to 1.3036.
Sterling was lower against the commodity currencies. GBP/AUD was 1.7660, down 0.18%, while GBP/NZD was 1.8979, a dip of just 0.05%.
GBP/CAD was almost unchanged at 1.7584.
Investors will be watching sterling throughout the day as several pro-Brexit cabinet ministers speak. Michael Gove is scheduled to speak at 09:45 GMT, while trade secretary Liam Fox will speak at 11:55 GMT. Boris Johnson will address parliament at 14:30 GMT.
Moves in sterling will also be watched later this week as UK employment and wages data will be released on Wednesday, while growth figures for the UK will be released on Thursday.