The pound remained strong yesterday and was mildly lifted by positive jobs data. UK unemployment rate dropped to 3.8% in the three months to July, beating expectations that it would remain at 3.9%. This figure is now at its lowest level since 1974. Average weekly earnings rose by 4% in the three months to July, and wage growth accelerated in most areas apart from manufacturing and the public sector.
In the wake of the prorogation of Parliament, Boris Johnson held talks with the DUP’s leader, Arlene Foster. He reiterated his belief that a Brexit deal is still possible, but added that he is still prepared to leave without one if “absolutely necessary.” Johnson also said that he would reject a ‘Northern Ireland only’ version of the backstop, which would keep Northern Ireland in the EU’s customs union. The DUP have said that they will not support any revised version of Theresa May’s Brexit deal that separates Northern Ireland from the rest of the UK.
Meanwhile, the group behind retail store Primark has said that a weaker pound is set to put their profit margins under pressure in the next financial year. They explained that the strength of the US dollar and the weakening of the pound will increase the cost of goods.
