Sterling is slightly weaker this morning ahead of a speech by Boris Johnson later, which will explain the UK’s position ahead of trade negotiations with the EU. He is expected to say that the government wants a trade deal similar to Canada’s and will be prepared to walk away from negotiations if necessary.
This morning, we’ll see the release of the final Manufacturing PMI figure, which will be followed by Construction PMI on Tuesday and Services PMI on Wednesday.
The pound was still strong against the dollar and the euro on Friday evening, as the decision from the Bank of England to keep rates on hold gave sterling a boost. In his final press conference, Mark Carney warned that the economy probably stagnated in the final quarter of 2019, while core inflation also slowed.
On Friday evening, the UK left the EU. To mark the exit, the Union Jack was lowered in Brussels and other EU institutions. We’re now in the Brexit transition period, when the EU and the UK will attempt to negotiate a trade deal in less than 11 months.
