The pound is choppy this morning, benefitting from the dollar’s weakness. Fears of a no-deal Brexit continue to weigh on sterling, with Jeremy Hunt admitting that leaving the EU without a deal could be a ‘short term’ economic shock. He added that Britain would be able to make it work in the long term, however. Boris Johnson also continues to consider suspending Parliament in order to push through a no-deal Brexit
Meanwhile, the EU’s chief Brexit negotiator, Michel Barnier, said that the EU are unimpressed by threats of a no-deal Brexit, and that the UK will have to face the consequences if they opt for this course.
Inflation rate data from yesterday came in at 2% for June, unchanged from the previous month and meeting expectations. UK retail sales figures will be released this morning, which are forecast to come in at 2.6% year-on-year, an improvement from 2.3% previously.
