The pound is up against both the dollar and the euro this morning, still showing signs of volatility. It is thought that this uplift will be brief due to ongoing no-deal Brexit worries.
Sterling was stuck at near two year lows yesterday, matching a two year low against the euro. This was due to further pricing in of the possibility of a no-deal Brexit. Boris Johnson’s rhetoric around no-deal preparations has spooked the markets, with the pound continuing to feel the pressure.
After Michael Gove stated that the EU are refusing to engage in further negotiations, Dominic Raab has said that the EU’s Brexit stance is making progress on a deal “difficult.” This casts further doubt on a deal being reached, although Raab added that the UK will “strive every sinew” to reach one.
GDP figures will be released tomorrow for the second quarter of this year, which are forecast to slow to 0.0%, down from 0.5% for the first quarter.
