Sterling is in a weak position this morning as the possibility of a no-deal Brexit continues to weigh. UK GDP and production data will be released today. GDP is expected to come in at 1.2% annually, compared to a previous 1.5%. Industrial production, manufacturing production and construction output are due to be released at the same time. A slowing growth rate will come as no surprise, especially since the Bank of England revised their growth forecasts last week.
After a positive start to the day, the pound fell to a two year low against the euro yesterday. This occurred due to reports that Boris Johnson was preparing to hold a general election after the October 31st Brexit deadline. His senior advisor, Dominic Cummings, has also reportedly told MPs that the Prime Minister could trigger no-deal even after losing a vote of no-confidence. Labour leader Jeremy Corbyn branded this “unconstitutional”, and has since demanded that a no-deal Brexit should be prevented from happening during a general election.
