It’s been a relatively quiet week for sterling, although there was positive news on Wednesday as the UK deficit hit a seventeen-year low. Yesterday, the government ruled out the possibility of a second Scottish independence referendum yesterday, helping to calm jitters about yet more uncertainty for Scotland. Speaking in Glasgow, David Lidington said that there was ‘no evidence’ of a growth in interest in holding one, saying that it was ‘settled for a generation’.
A strong dollar kept the pound at almost a month’s low, as the US’ economy continues to show strong performance.
The main focus continues to be whether there will be any sign of a breakthrough in Brexit talks, although this does not look likely at this time. UK businesses have warned of the impact of Brexit uncertainty, as RBS posts lower net profits than this time last year – although still ahead of forecasts.
