The pound was given a boost yesterday, and is still strong today on news that the UK economy grew by 0.3% in July. Sterling reached near to its highest levels since July due to reduced expectations that the UK economy will fall into a recession. Data showed that all sectors of the economy grew, with the manufacturing and construction sectors bouncing back from a tough month previously.
On a visit to Ireland yesterday, Boris Johnson said he believes that a Brexit deal is “still possible” and that a no-deal Brexit would be a “failure”, a statement that provided some uplift for the pound. The Irish Prime Minister, Leo Varadkar, said that there is no such thing as a “clean break” when it comes to leaving the EU, but also added that a deal could still be possible.
The bill requiring Boris Johnson to delay Brexit if a deal can’t be found received royal assent yesterday afternoon, and therefore became law. MPs also rejected a second call for a snap election, confirming expectations before the prorogation of Parliament.
After a long sitting, which involved unprecedented scenes in the House of Commons, Parliament was prorogued on Monday evening, meaning that that a general election will now not be possible until late November at the earliest.
Today we will see the release of the unemployment rate figure for the UK, which is forecast to hold steady at 3.9%. Average earnings are expected to have increased by 3.7% year-on-year from the three months to July.
