The pound is expected to have its first January rise since 2012 this month
The pound is expected to record its first rise since January 2012 this month. Sterling is also around 1.4pc against the US dollar, despite it dropping below $1.25 against the currency this morning.
Just last week it had jumped to a five-week high of $1.2674 against the dollar. However, Donald Trump’s controversial travel ban has sent jitters across currency markets.
Andy McLevey, of Interactive Investor, said: "Caution remains the watchword however ahead of a raft of economic data later today with central banks taking stage later in the week set amid a backdrop of political tension it's not surprising many investors are adopting a wait and see policy."
- Nationalist claims Scotland is 'held back' on exports by using pound
- Pound edges down ahead of Donald Trump and Theresa May meeting
On Monday there was a 66 point decline over uncertainty surrounding Mr. Trump's immigration ban
Caution remains the watchword
Meanwhile, the FTSE 100 got back “in action” on Tuesday following Monday’s 66 point decline over uncertainty surrounding Mr Trump’s immigration ban.
The stand out stock in London is online grocery delivery service, Ocado, which is up almost seven per cent after an hour's trade in the capital.
While, financials are leading the FTSE 100's surge, with Old Mutual 1.6 per cent higher and Hargreaves Lansdowne up 1.58 per cent.
The FTSE 100 got back "in action" on Tuesday
Neil Wilson, of ETX Capital, said: "The Brexit trade – long FTSE/short pound – is back in action today as a soft batch of UK data collided with some upbeat news from the Eurozone.
“The pound is down around half a percent against the euro and the dollar, touching its lowest level in a week against the two currencies, while the FTSE 100 has ticked up a quarter of a percent to erase yesterday’s slip."
Russ Mould, investment director at stockbroker AJ Bell, added: "The FTSE 100 edged into positive territory in early trading although jitters remain over US President Donald Trump's controversial travel ban and the possible effects of a hard Brexit on the UK economy.
The stand out stock in London is Ocado 10 stock market safe havens to invest in Tue, March 1, 2016
We look at the highlights of the markets, currencies and securities that have performed well since the start of the year. Some might surprise you.
Photothek via Getty Images 1 of 10
Bullion is often used as a safe haven in times of economic stress. After flip-flopping for the last few years, spot gold has gained nearly 16 percent against the dollar year-to-date and even more against sterling which been hit by fears of a
"Traders will be looking to UK mortgage approvals, net lending, consumer confidence and money supply data out mid-morning, while in the EU it is inflation, unemployment and GDP data that will occupy attentions."
It is unknown whether Parliament’s current debate on the Government’s Brexit bill will have an impact on the markets.
- Five minute guide to the surge in the UK stock market
- Donald Trump and Man United victories give Paddy Power a kicking
- Pension fund returns hit seven-year high amid Brexit vote