I think there is a little bit of optimism today for the dinner that is taking place tonight at 10 Downing Street.
"The market is looking at what is going to give a boost in the next six months... but I think it's mostly flow driven and volumes that are not really heavy."
"The more consolidative tone of the pound is likely related to the fact that it is the worst performing G10 currency on a 1 month view - investors are likely pausing and evaluating new news."
Brexit talks this week between Britain and the EU ended early on Thursday, with a meeting between the chief negotiators on Friday cancelled.
Little progress has been made in agreeing Britain's future trading relationship with the bloc.
The pound was down 0.6% on the day against the euro at 1450 GMT at 90.87 pence, its lowest level against the single currency since March 26. Versus the dollar
Gains against the euro, however, were slashed after British industrial output recorded its biggest quarterly fall on record during the three months to June.
The pound was last up 0.3% at $1.2386, having fallen earlier to $1.2337, its lowest since Jun
The BoE, which meets on Thursday, is expected to build up its war-chest for fighting the crisis by announcing an increase of at least 100 billion pounds ($125 billion) in its bond-buying programme.
This year, the pound has lost almost 5pc against the dollar, but recovered 0.3pc on Tuesday, touching $1.2645. Against the euro, the pound was up 0.2pc at 89.63 pence.
The pound had a disappointing week, slipping back after it had risen 3.9pc against the dollar in 10 consecutive days of gains starting on May 28 - its longest winning streak since January 2018.
A gauge of sterling overnight implied volatility rose to a 2-1/2-month high of 11.50, suggesting traders expected higher-than-usual swings in the British currency on Wednesday.
The dollar fell against most currencies as investors pondered what the potential fallout might be from the mass protests against racism spreading across the United States.
The pound touched $1.2608 around 0700 GMT, its highest since April 30. It wa