The pound is heading for two-year lows this morning and was close to its lowest level since April 2017 yesterday. This comes due to expectations of a no-deal Brexit and poor retail data, reaffirming the woes of the UK high-street. Due to concerns about a worsening economy, markets are now pricing in a rate cut from the Bank of England over the next 12 months, another factor which has weakened the pound.
Despite fears of a no-deal Brexit, MPs voted to pass a process that would make suspending Parliament more difficult. This amendment to the Northern Ireland Bill scraped through by a small margin, and would make it harder for the new Prime Minister to push a no-deal through.
Markets look to Balance of Trade and GDP figures this morning. The GDP forecast for May is expected to come in at 0.3% month-on-month, an improvement to the -0.4% in April. This data will help to decide if the British economy shrank in the second quarter of 2019.
