The pound dropped versus the dollar and euro yesterday after British MPs once again rejected a series of alternative options to Prime Minister Theresa May’s EU divorce deal. Reacting to Monday’s votes, the European Union’s chief negotiator Michel Barnier warned it is “day after day more likely” that Britain will crash out of the bloc next week without an orderly withdrawal agreement.

In afternoon trading in London, the pound was down about 0.4 per cent versus both the dollar and euro. London’s benchmark FTSE 100 index rose by one per cent on the pound’s fall, as it features several multinationals who earn vast sums in dollars.

“As ever, the pound is the clearest gauge of the market’s view on continued (Brexit) uncertainty and is halfheartedly losing ground against the euro and the dollar,” said Fiona Cincotta, senior market analyst at City Index.

“Parliamentary disarray is also hitting the euro because a disorderly Brexit has the potential to affect European companies trading with the UK,” Ms Cincotta added in a client note.

Trading on Wall Street opened slightly down after the opening bell yesterday. The dip in New York followed a US government report that orders for durable goods fell in February by far more than expected.

In another downbeat note for the economic outlook, the World Trade Organization forecast yesterday that global trade growth would be lower in 2019 than last year.

In its main annual forecast, the WTO revised its prediction for this year down from 3.7 percent to 2.6 percent, citing widespread “tensions” and economic uncertainty, including Brexit and tariffs between the US and China.

Traders are now awaiting the start of the next round of top-level China US trade talks in Washington, after reports of progress in last week’s meeting in Beijing.

A series of olive branch measures from the Chinese side has lifted hopes the two will eventually reach a deal to end their tariffs row, which dragged on equities at the end of 2018.

This week also sees the release of US March jobs data, which are closely watched for an idea about the state of the economy, with the Federal Reserve also using the figures to map its path for monetary policy. The Fed’s recent dovish lean has helped propel a rally across stock markets this year, with other central banks also looking to ease up on their tightening moves.

“Having the central banks take a step back, with the Fed saying that they’re going to pause and that they’re going to be patient at least toward the end of this year, I think that gives the market a little bit of time” to wait for economic data to turn around, said Victoria Fernandez, chief market strategist at Crossmark Global Investments in Houston.