GBPUSD Pound Sterling vs United States Dollar

The pound declined against its major counterparts in the European session on Monday, erasing its early gains, amid Brexit worries as MPs of both houses of Parliament have demanded the U.K. government to publish the full version of Brexit deal.

Theresa May is under pressure to publish the full legal advice on her Brexit withdrawal deal, as lawmakers start debating her plan this week.

May's chief Brexit adviser reportedly suggested that the Northern Ireland "backstop" agreed in Brexit deal was a "bad outcome" for Britain.

"If the full legal advice is not forthcoming, we will have no alternative but to start proceedings for contempt of Parliament - and we will work with all parties to take this forward," shadow Brexit secretary Keir Starmer told.

Meanwhile, the opposition Labour Party signaled that it would bring a motion of no confidence in the government if the PM loses the Commons vote on her Brexit deal.

Survey data from IHS Markit showed that UK manufacturing sector expanded at the fastest pace in two months in November, exceeding economists' expectations.

The CIPS manufacturing purchasing managers index rose to 53.1 from October's 27-month low of 51.1. Economists had forecast a score of 51.7.

The currency was higher against its most major counterparts in the Asian session amid risk appetite, as trade tensions reduced after U.S. President Donald Trump and Chinese President Xi Jinping agreed to a 90-day truce in the clash between the world's two largest economies.

The pound weakened to 0.8920 against the euro, after advancing to 0.8863 at 3:00 am ET. The next possible support for the pound is seen around the 0.91 level.

Data from IHS Markit showed that Eurozone's manufacturing growth slowed less-than-expected in November, amid marginal growth in output and weak business confidence, and was the lowest since August 2016.

The manufacturing purchasing managers' index fell to 51.8 from 52 in October. The flash reading was 51.5.

Having climbed to a 5-day high of 1.2785 against the franc at 3:00 am ET, the pound reversed direction and weakened to a 4-day low of 1.2693. On the downside, 1.25 is seen as the next likely support level for the pound.

Survey data from procure.ch and Credit Suisse showed that Switzerland's factory sector growth improved in November, defying expectations for further slowdown, while the service sector expansion slowed for a second straight month.

The procure.ch Purchasing Mangers' Index for industry climbed to 57.7 from 57.4 in October. Economists had forecast a score of 56.4 and above it long-term average of 55 points.

The pound dropped to near a 2-week low of 144.30 versus the yen, reversing from a 4-day high of 145.51 touched at 2:45 am ET. The pound is poised to find support around the 143.00 mark.

The latest survey from Nikkei showed that Japan manufacturing PMI continued to expand in November, albeit at a slower pace, with a manufacturing PMI score of 52.2.

That's down from 52.9 in October, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.

Reversing from a 4-day high of 1.2825 seen at 3:05 am ET, the pound declined to near a 5-week low of 1.2708 versus the dollar. The pound is seen finding support around the 1.24 mark.

Looking ahead, at 8:00 am ET, Federal Reserve Governor Randal Quarles speaks about the economic outlook and monetary policy at the Council on Foreign Relations in New York.

New York Fed President John Williams will give opening remarks at The Evolving Structure of the US Treasury Market conference hosted by the Federal Reserve Bank of New York at 9:15 am ET.

In the New York session, U.S. construction spending for October and ISM manufacturing for November are set for release.

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