A lack of notable ecostats and bearishness before the US tax reform vote left the pound US dollar (GPB USD) exchange rate trading within a narrow band on Tuesday morning - with Monday’s upbeat manufacturing data helping keep Sterling afloat.

Britain’s factories continued to benefit from an export boom, according to figures from the Confederation of British Industry on Monday, with the currently weak pound and rising demand from Eurozone importers leaving UK factories with their biggest order books since 1988.

The survey demonstrated that 42 per cent of manufacturers increased output in the past three months, whilst only 11 per cent claimed that output was down.

Similarly, some 28 per cent asserted that order books were higher than normal, compared to 11 per cent who claimed a shortage of business.

The key takeaway here, however, was that the CBI factory order books index has demonstrated drastic improvement since the Brexit referendum – essentially underlining that the fall in the value of the pound has made UK goods more attractive to foreign buyers.

On the political front, EU Chief Negotiator Michel Barnier has ruled out a ‘special deal’ with the City of London, asserting that if the UK leaves the single market, then London and the UK’s financial services sector will similarly lose the right to trade freely with the EU.

Mr Barnier said: “There is no place (for financial services). There is not a single trade agreement that is open to financial services. It doesn’t exist.”

UK Brexit Secretary David Davis has previously asserted that the UK will be seeking a ‘Canada Plus Plus Plus’ deal, with the understanding that the deal will combine elements of the Ottawa-Brussels trade arrangement but with extra additions regarding financial services.

Mr Barnier’s latest comments seem to diminish this possibility, although the response in the currency market has been minimal.

Across the pond anticipation is reaching fever pitch for US President Donald Trump’s tax reform, with Republican Party leadership asserting that reconciliation is as good as complete and that they have the votes required to pass the GOP tax bill.

Tonight’s vote is the final hurdle before the reform is signed into law by Mr Trump.

The bill notably reduces the number of federal income tax brackets from 7, to 4 whilst also slashing the corporate tax rate from 35 per cent to 21 per cent, amongst many other measures.

Investors have been eagerly awaiting these changes, with many economists predicting that the lower corporate tax band will make American industries more competitive on the world stage.

This could, in turn, bolster economic growth.

If the vote is indeed successful then the US dollar could surge.

Markets are nonetheless slightly apprehensive about the Republican’s slim margin of lead, with a failure to acquire the necessary votes liable to leave the US dollar floundering.