Gbp crawls higher against usd amid trump-russia investigation

GBP/USD fell from its 11-month high yesterday of US$1.325 and has this morning edged back up to US$1.315. There is no data of note on the UK economic calendar today, leaving the pound to

roil in the fallout from yesterday's 'Super Thursday' of Bank of England (BoE) announcements. The latest policy meeting roundly disappointed, with just two members of the

Monetary Policy Committee (MPC) pressing for higher rates. BoE Chief Economist Andy Haldane returned to the dove's camp after suggesting last month that he thinks the risks of hiking

rates too late now outweigh the risks of hiking too soon. New policymaker Silvana Tenreyro proved to be cautious, as was expected, siding with the majority in backing another rate freeze - a

disappointment for the market considering her predecessor, Kristin Forbes, was one of the more optimistic members of the committee. News that a grand jury has allegedly been convened by

special counsel Robert Mueller to examine witnesses and evidence related to the investigations into ties between the Trump Administration and Russia has undermined the US dollar this

morning. A grand jury is a standard tool for prosecution in criminal investigations and is a sign that Mueller's investigation is escalating and that the special counsel intends to

subpoena witnesses and documents. The jury not only has the power to investigate criminal conduct, but also to decide whether or not criminal charges should be brought against the subjects

of an investigation. A statement from special counsel to the President Ty Cobb said: "The White House favors anything that accelerates the conclusion of his work fairly. "The White

House is committed to fully cooperating with Mr Mueller." Two new bills have been unveiled in a joint effort between Republicans and Democrats to protect Mueller from dismissal by

President Donald Trump. The President earlier this year fired then FBI Director James Comey, in a move seen as an attempt to slow or halt his investigations into potential collusion with

Russia during the election. Mr Trump claimed it was because of the FBI Director's conduct during the election, which saw him deal significant damage to Hillary Clinton's campaign

after announcing she was still the subject of a criminal investigation into use of a private email server. The news has placed market focus firmly back on the political sphere this morning,

despite the approach of key economic data that could significantly alter the odds of another interest rate hike from the Federal Reserve in December. July's non-farm payrolls report

will give an indication of the health of the labour market; a key yardstick for the Fed in deciding whether the economy can support higher borrowing costs. Markets are currently placing odds

of just 39.6 per cent on another hike in December, but today's jobs figures could change that. The payrolls are expected to show the creation of 180,000 new jobs - a slowdown on

June's 222,000, but still a respectable performance - which is predicted to push the unemployment rate down from 4.4 per cent to 4.3 per cent.