The pound is up against the dollar and the euro this morning, after falling to a two-year low on Friday. UK GDP data unexpectedly contracted by 0.2% in the second quarter of this year, causing sterling to weaken. This was due to a lull following the Brexit stockpiling which took place earlier in the year, causing business investment to be lower. This poor data has also fuelled fears of a recession.
Labour MPs have reportedly been asked to cancel travel plans in early September, in anticipation of Jeremy Corbyn tabling a motion of no confidence in the government. Meanwhile, Boris Johnson has said that civil servants need to prepare urgently for a no-deal Brexit, calling it a ‘top priority.’ There’s also increasing speculation that the Prime Minister is preparing for a general election.
Unemployment figures come out for the UK tomorrow, as well as retail and inflation figures on Wednesday and Thursday. They could provide further insight into the state of the UK economy, following the poor GDP figures.
