The pound reversed early declines on Wednesday on a more optimistic outlook over Brexit, shrugging off numbers showing an unexpected fall in Britain’s services sector and pointing the economy would expand slightly in the last quarter of 2018.
The British currency slipped 0.1 percent to $1.2728. Versus the euro it gained 0.1 percent to 89.06 pence.
Sterling recovered from the 17-month trough it touched on Tuesday, underpinned by suggestions in some quarters that the UK may not to depart from the European Union after all.
The IHS Markit/CIPS UK Services Purchasing Managers’ Index (PMI) dropped to 50.4 from 52.2 in October, the weakest reading since just after the 2016 Brexit referendum and below all predictions.